Estate of Melvin W. Ballantyne, Deceased, Jean S. Ballantyne, Independent Executrix, and Jean S. Ballantyne - Page 17

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          taxes on the 1994 K-1" and “word that cash is estate’s share of             
          ptnrsp [sic]”.  The evidence in the record reflects that, at the            
          time the grain sales were made in 1994, the grain was owned by              
          BBP.  It was not until the settlement agreement in 1998 that the            
          grain was labeled as the sole property of Russell.  It is well              
          settled that taxpayers lack the privilege of retroactively                  
          allocating between themselves tax obligations owed to the United            
          States.  United States v. Little, 753 F.2d 1420, 1430 (9th Cir.             
          1984); Moore v. Commissioner, 70 T.C. 1024, 1032 (1978); Curtis             
          v. Commissioner, T.C. Memo. 1995-344; Jacobellis v. Commissioner,           
          T.C. Memo. 1988-315; see also Pesch v. Commissioner, 78 T.C. 100,           
          128-129 (1982); Bonner v. Commissioner, T.C. Memo. 1979-435 (“an            
          agreement to which respondent is not a party cannot force him to            
          collect taxes from someone other than the person upon whom taxes            
          are imposed” (citing Neeman v. Commissioner, 13 T.C. 397 (1949),            
          affd. per curiam 200 F.2d 560 (2d Cir. 1952))).  On the basis of            
          the evidence in the record, we hold that the grain sold in 1994             
          was BBP’s property and that the income from the grain sales was             
          therefore BBP’s.  We now turn to the question of the proper                 
          allocation between the estate and Russell of the partnership                
          income from the grain sales in 1994.                                        
          II. Allocation of Gain From Sale of Grain                                   
               A partner must take into account his “distributive share” of           
          each item of partnership income, gain, loss, deduction, and                 

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