- 370 -
Century Industries to avoid the double inclusion of such income
to Kanter.
Issue 5. Whether Kanter Had Unreported Income for 1982, 1983,
1984, 1987, 1988, and 1989 From the CMS Investors Partnership
FINDINGS OF FACT
Certain "bonus payments" were made by two partnerships,
Shelburne and Century, to Delta and Alpha Partnerships. CMS
Investors, a partnership, was a partner in both Delta and Alpha
partnerships, and, therefore, CMS Investors received from Delta
and Alpha the distributable share of the bonus payments that
originated from Shelburne and Century. Holding Co. was one of
the partners in CMS Investors, and Holding Co. received its
distributable share of these bonus payments as a partner in CMS
Investors. Holding Co. reported these payments as income on its
Federal income tax returns.
In notices of deficiency, respondent determined that Kanter
failed to report income earned by him in the amounts of $191,461,
$232,900, $290,785, $29,998, $127,249, and $279,596 for the years
1982, 1983, 1984, 1987, 1988, and 1989, respectively, that was
reported by Holding Co. as its share of the ordinary income of
the CMS Investors partnership.
OPINION
This Court, in Durkin v. Commissioner, 87 T.C. 1329 (1986),
affd. 872 F.2d 1271 (7th Cir. 1989), made certain factual
conclusions regarding the loan by Delta to Shelburne and the loan
Page: Previous 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 NextLast modified: May 25, 2011