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OPINION
SWIFT, Judge: This matter is before the Court on the
parties’ cross-motions for partial summary judgment. Rule
121(b). This is a test case, and the motions for partial summary
judgment raise an issue that will affect the outcome of other
cases.
These cross-motions raise the general question of whether
petitioner is to be regarded as at risk within the meaning of
section 465 with regard to partnership debt obligations
associated with a computer equipment leasing transaction. More
specifically, these motions raise the question as to whether,
notwithstanding the recourse nature of a third-party bank loan,
certain guaranties, commitments, suspension and setoff
provisions, and matching payments, among other features of the
transaction, should be treated as protecting petitioner against
any realistic possibility of realizing a loss on the transaction.
For 1980, respondent determined a deficiency in petitioner's
Federal income tax in the amount of $21,399.
Unless otherwise indicated, all section references are to
the Internal Revenue Code of 1954 as in effect for the year in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
When the petition was filed, petitioner resided in Marina
Del Ray, California.
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Last modified: May 25, 2011