- 2 - Commissioner, T.C. Memo. 2000-382. See Rule 161, Tax Court Rules of Practice and Procedure. In Dynadeck Rotary Sys. v. Commissioner, supra, the facts and holding of which are incorporated herein by this reference, we sustained respondent’s determination that the Partnership had no debt during 1991 and 1992 that would allow its partners to increase their bases in the Partnership under section 752(a). In so doing, we rejected petitioner’s argument that $400,000 owed to the Laurel Assets Group (LAG), an unrelated investment group, was a Partnership debt that increased each partner’s basis in the Partnership for those years. Petitioner acknowledged that LAG transferred the $400,000 directly to Dynadeck Rotary Systems Incorporated (Corporation), a partner in the Partnership, and that the underlying promissory note listed the Corporation as the obligor. Petitioner asserted that the Corporation received the $400,000 as the Partnership’s agent. We stated: The facts of this case do not establish that the Partnership was ever liable to repay any of that [the $400,000] amount. The sole evidence that we find in the record as to a debtor/creditor relationship is the promissory note which provides clearly that the Corporation owed the money to LAG. The note says nothing, nor is there evidence, to support petitioner’s claim that the Corporation executed that note as the Partnership’s agent or that the Partnership was liable for the note’s repayment. Nor is there any evidence of a written agreement identifying the Corporation as the Partnership’s agent, or evidence that the Corporation was held out as the partnership’s agent in dealings with LAG or another third party. See Commissioner v. Bollinger, 485 U.S. 343, 349-350 (1988).Page: Previous 1 2 3 4 5 Next
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