- 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