- 5 - C. Tri-City Truck Parts and Newark Wreckers In 1987, petitioner and Peter Viviano (Mr. Viviano) formed M&V Investments of which each owned a 50-percent interest.4 On April 14, 1987, M&V Investments purchased a company named Tri- City Truck Parts and Equipment (Tri-City) for $350,000. The seller, Raymound Giarrusso (Mr. Giarrusso), took back a $200,000 note from petitioner and Mr. Viviano with the balance of the purchase price, $150,000, being paid in cash. At the same time, M&V Investments purchased Newark Wreckers, Inc. (Newark Wreckers), from Mr. Giarrusso for $50,000, for which each partner paid $25,000. Accordingly, for the two purchases, each partner contributed $100,000 and was personally liable under the $200,000 note payable to Mr. Giarrusso. For each of the taxable years 1987 through 1990, Newark Wreckers filed Forms 1120. Petitioner was a 50-percent shareholder and president of Newark Wreckers from 1987 through 1989. Likewise, Tri-City timely filed Forms 1065, U.S. Partnership Return of Income, for each of the years 1987 through 1990. Petitioner was a 50-percent income and loss partner of Tri-City. 4The parties characterize petitioner’s relationship with Mr. Viviano as a “limited partnership”. However, there is no indication that the parties entered into a formal limited partnership or that partnership returns were filed for the years at issue.Page: 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