Harbor Cove Marina Partners Partnership, Robert A. Collins, A Partner Other Than The Tax Matters Partner - Page 35

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          thereafter reporting that it had acquired HCMP’s business,                  
          assets, and liabilities.  According to respondent, Collins may              
          not unilaterally disavow his other partners’ view that HCMP had             
          terminated during 1998, nor the fact that HCMP’s business                   
          operation is now being reported by another taxpayer.  We find               
          respondent’s focus misplaced.  Simply because a managing partner            
          acts unilaterally to dissolve a partnership, to zero out the                
          partnership assets and liabilities, and to report to the                    
          Commissioner that the partnership has been terminated does not              
          mean that the partnership has terminated for Federal tax                    
          purposes.  Nor is it critical to our decision that HCMP is no               
          longer reporting the marina business as its own.  What is                   
          important to us is that the parties to the HCMP partnership                 
          agreement had agreed that the marina would be sold by HCMP in the           
          case of a dissolution, that basic tax principles establish that             
          any income or loss on such a sale must be reported by HCMP, and             
          that such a sale by or on behalf of HCMP may reasonably occur in            
          a year after 1998.                                                          

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