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(1987); see H. Conf. Rept. 97-760, at 610 (1982), 1982-2 C.B.
600, 667. Pursuant to this grant of authority, the Secretary
promulgated the so-called bankruptcy rule, which provides as
follows:
(a) Bankruptcy. The treatment of items as partnership
items with respect to a partner named as a debtor in a
bankruptcy proceeding will interfere with the effective and
efficient enforcement of the internal revenue laws.
Accordingly, partnership items of such a partner arising in
any partnership taxable year ending on or before the last
day of the latest taxable year of the partner with respect
to which the United States could file a claim for income tax
due in the bankruptcy proceeding shall be treated as
nonpartnership items as of the date the petition naming the
partner as debtor is filed in bankruptcy. [Sec.
301.6231(c)-7T(a), Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 6793 (Mar. 5, 1987).]
The effect of the conversion is to remove the debtor-partner from
the partnership proceeding and subject the converted items to the
deficiency procedures applicable to the partner's individual tax
case. Computer Programs Lambda, Ltd. v. Commissioner, supra at
203.
Nature of Mrs. Locke's Interest in the Partnerships
In order to assess the impact of the bankruptcy rule upon
Mrs. Locke, we must first ascertain the nature of her interest,
if any, in the partnerships. State law determines ownership of
property, and Federal income tax liability follows ownership.
United States v. Mitchell, 403 U.S. 190, 197 (1971). On these
records, other than Mrs. Locke's unsupported assertion on brief
that she and Mr. Locke resided in New York during the years in
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