- 14 - generally problematic and costly, especially in the instant setting where petitioner's 50-percent interest would most likely have had to be partitioned before it could be sold. To the extent that the excess value remained in the MPP, it would constitute an overfunding of the MPP, which, under basic principles of pension law, would have to be given back to the transferor to avoid plan termination. See sec. 1.415-9(a)(1), Income Tax Regs.; see also Buzzetta Constr. Corp. v. Commissioner, 92 T.C. 641 (1989). The mere fact that the value that petitioner transferred to the MPP may have equaled the amount that he owed both the Plans, a fact that petitioner asserts but which the record disproves, does not mean that both debts are satisfied as a result of the transfer. Indeed, it appears that petitioner continues to owe the DBP the money (with interest) that it lent to him because he has never transferred any value to the DBP to repay these amounts. The record suggests that petitioner attempted to satisfy his $1,150,000 obligation to the Plans by surrendering property of inadequate value. The property had been appraised at a total of $2,078,000 shortly after the transfer, and the record does not support a finding that petitioner's 50-percent interest in the property was worth more than $1,039,000 on the date of the transfer (i.e., 50% x $2,078,000). Of course, it would be an unusual case where petitioner's 50-percent undivided interestPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011