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T.C. Memo. 1990-492. In Weiss, the taxpayer Robert B. Weiss (Mr.
Weiss) entered into a partnership agreement in November 1978 with
three other individuals (Hillman group partners) for the purpose
of purchasing and operating a motel. See id. at 243. In Feb-
ruary 1979, in connection with the financing of that partnership
(Hillman group/Weiss partnership), Mr. Weiss personally guar-
anteed the participation of Flagship Bank of Tampa (Flagship) in
$300,000 of a $1,000,000 loan to the partnership from another
bank. See id. On October 5, 1979, because the Hillman
group/Weiss partnership needed an infusion of capital, one of the
Hillman group partners requested Mr. Weiss and the other partners
to contribute additional capital to the partnership (capital
call). All of the Hillman group partners satisfied their share
of that capital call, but Mr. Weiss did not. See id. As a
result, on November 19, 1979, one of the Hillman group partners
notified Mr. Weiss that the Hillman group/Weiss partnership had
acquired his partnership interest on November 15, 1979, pursuant
to a provision in the Hillman group/Weiss partnership agreement
that permitted such an acquisition if a partner failed to satisfy
a capital call within 30 days. The Commissioner of Internal
Revenue had determined, inter alia, that, because Mr. Weiss was
relieved of his partnership liability on or before November 15,
1979, he realized a short-term capital gain on his share of the
Hillman group/Weiss partnership liabilities for which he was no
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