Coggin Automotive Corporation - Page 22

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          Congress’ supersession of General Utils. & Operating Co. v.                 
          Helvering, 296 U.S. 200 (1935).                                             
               Petitioner maintains that although there are no cases that             
          apply the aggregate or entity approach to inventory items, the              
          focus with respect to accounting for inventory is done at the               
          partnership level.  In essence, petitioner asserts that the LIFO            
          recapture amount under section 1363(d) is a component of a                  
          partnership’s taxable income that must be computed at the                   
          partnership level.  Petitioner posits that it would be incongruent          
          to treat the calculation of the LIFO recapture amount as an item of         
          income under the entity approach while applying the aggregate               
          approach to attribute the ownership of inventory to the partners.           
          Moreover, petitioner argues that section 1363(d)(4)(D) operates to          
          prevent the inventory of one member of an affiliated group from             
          being attributed to another member.                                         
               To summarize the parties’ positions:  respondent maintains             
          that for purposes of section 1363(d), each of the limited                   
          partnerships (i.e., CP-GMC Motors, Ltd., CH Motors, Ltd., CN                
          Motors, Ltd., CA Motors, Ltd., CFP Motors, Ltd., and CO Motors,             
          Ltd.) should be viewed as an aggregation of its partners, and               
          consequently, petitioner, as a limited partner in each of the               
          partnerships, is deemed to own a pro rata share of each                     
          partnership’s inventory of automobiles and light trucks.                    
          Conversely, petitioner maintains that each of the limited                   

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