T.C. Memo. 1997-295
UNITED STATES TAX COURT
SANDY LAKE ROAD LIMITED PARTNERSHIP, J. STEVE ANDERSON III, TAX
MATTERS PARTNER, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 9441-95. Filed June 30, 1997.
R determined adjustments to certain of SLR's
partnership items for 1990. On its 1990 Return of
Partnership Income, SLR categorized as "other
deductions" Texas "rollback" taxes incurred at the time
of disposition of unimproved real property, as well as
related attorney's fees. R reclassified these items as
deductions related to portfolio income. See sec.
469(e)(1)(A)(i)(II), I.R.C. P now asserts that these
items may be used to reduce the amount realized on the
disposition of the property, on the ground that the
rollback tax is not a real property tax within the
meaning of sec. 164(a)(1), I.R.C. In the alternative,
P disputes R's treatment of the disputed items as
deductions related to portfolio income.
1. Held: The rollback tax is a specifically
enumerated real property tax within the meaning of sec.
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