Patty K. Copeland, a.k.a. Patty K. White - Page 5




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          1987), affg. T.C. Memo. 1986-156; Krause v. Commissioner, supra             
          at 168 (and cases cited therein); Drobny v. Commissioner, 86 T.C.           
          1326, 1341 (1986) (motion to vacate denied at T.C. Memo. 1995-              
          209, affd. 113 F.3d 670 (7th Cir. 1997)); Brannen v.                        
          Commissioner, 78 T.C. 471, 505 (1982), affd. 722 F.2d 695 (llth             
          Cir. 1984); Hager v. Commissioner, 76 T.C. 759, 782 n.11 (1981).            
               In analyzing economic substance and the profit objective               
          test, courts focus on actions of the partners who manage affairs            
          of the partnerships and upon the underlying activities of the               
          partnerships.  See Hill v. Commissioner, 204 F.3d 1214 (9th Cir.            
          2000); Thomas v. United States, 166 F.3d 825, 832-834 (6th Cir.             
          1999); Drobny v. Commissioner, 86 T.C. at 1341 (citing Brannen v.           
          Commissioner, 78 T.C. at 504-505); Fox v. Commissioner, 80 T.C.             
          972, 1007-1008 (1983), affd. without published opinion 742 F.2d             
          1441 (2d Cir. 1984), affd. sub nom. Barnard v. Commissioner, 731            
          F.2d 230 (4th Cir. 1984), affd. without published opinions sub              
          nom. Hook v. Commissioner, Kratsa v. Commissioner, Leffel v.                
          Commissioner, Rosenblatt v. Commissioner, Zemel v. Commissioner,            
          734 F.2d 5, 6-7, 9 (3d Cir. 1984).                                          
               Under any other approach, different results would accrue to            
          partners in the same partnerships even though the partners                  
          themselves may have had no control over activities of the                   
          partnerships.  See Independent Elec. Supply, Inc. v.                        
          Commissioner, 781 F.2d 724, 729 (9th Cir. 1986), affg. Lahr v.              
          Commissioner, T.C. Memo. 1984-472; Resnik v. Commissioner, 66               




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