- 6 - In connection with the SAB Foam transactions, therefore, the arrangement was that PI would pay a monthly joint venture fee to SAB Foam, in the same amount that SAB Foam would pay monthly to F&G as rent, in the same amount that F&G would pay monthly to ECI on the F&G note, in the same amount that ECI would pay monthly to PI on the ECI note. In connection with these arrangements by PI, ECI, F&G, SAB Foam, and RRI, these monthly payments were offsetting, so they could be kept as bookkeeping entries with no money actually changing hands. On its 1982 Form 1065, U.S. Partnership Return of Income, SAB Foam reported that the four recyclers had an aggregate basis of $7 million, or $1,750,000 each, for purposes of the investment and business energy tax credits. In the present case, the undisputed evidence, including the stipulation of the parties, establishes that the recyclers were not properly valued at $1,750,000 but instead had a maximum value of $30,000 to $50,000 each. SAB Foam reported a net ordinary loss of $662,556. SAB Foam included the portion of credits and losses attributed to petitioners on Schedules K-1, Shareholder’s Share of Income, Credits, Deductions, Etc., filed with SAB Foam’s partnership tax return. B. Private Offering Memorandum The private offering memorandum (memorandum) that generally was distributed to potential investors contemplated the creationPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011