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Discussion
It is well established that the issue under section 183 as
to whether partnerships are engaged in activity with a profit
objective is determined at the partnership level. Pasternak v.
Commissioner, 990 F.2d 893, 900 (6th Cir. 1993), affg. Donahue v.
Commissioner, T.C. Memo. 1991-181; Simon v. Commissioner, 830
F.2d 499, 507 (3d Cir. 1987), affg. T.C. Memo. 1986-156; Krause
v. Commissioner, 99 T.C. 132 (1992) (and cases cited therein);
Drobny v. Commissioner, 86 T.C. 1326, 1341 (1986) (motion to
vacate denied at T.C. Memo. 1995-209, affd. 113 F.3d 670 (7th
Cir. 1997)); Brannen v. Commissioner, 78 T.C. 471, 505 (1982),
affd. 722 F.2d 695 (llth Cir. 1984); Hager v. Commissioner, 76
T.C. 759, 782 n.11 (1981).
In resolving this issue, courts focus on actions of the
partners who manage affairs of the partnerships and upon whom
other partners rely to make partnership decisions. Drobny v.
Commissioner, 86 T.C. at 1341 (citing Brannen v. Commissioner, 78
T.C. at 504-505); Fox v. Commissioner, 80 T.C. 972, 1007-1008
(1983), affd. without published opinion 742 F.2d 1441 (2d Cir.
1984), affd. sub nom. Barnard v. Commissioner, 731 F.2d 230 (4th
Cir. 1984), affd. without published opinions sub nom. Hook v.
Commissioner, Kratsa v. Commissioner, Leffel v. Commissioner,
Rosenblatt v. Commissioner, Zemel v. Commissioner, 734 F.2d 5, 6-
7, 9 (3d Cir. 1984). Under any other approach, different results
would accrue to partners in the same partnerships even though the
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