Hubert Enterprises, Inc. and Subsidiaries, et al. - Page 1

                                   125 T.C. No. 6                                     

                               UNITED STATES TAX COURT                                

           HUBERT ENTERPRISES, INC. AND SUBSIDIARIES, ET AL.,1 Petitioners            
                   v. COMMISSIONER OF INTERNAL REVENUE, Respondent                    

               Docket Nos.  4366-03, 10669-03,   Filed September 21, 2005.            

                    A few individuals controlled a corporation (P1)                   
               and a limited liability company (ALSL).  P1 transferred                
               $2,440,684.38 to ALSL primarily to retransfer to a                     
               related limited partnership for use in the construction                
               of a retirement community.  The construction project                   
               was discontinued, and $2,397,266.32 of the transferred                 
               funds has not been repaid.  P1 seeks to deduct those                   
               unrecovered funds as either a bad debt or a loss of                    
               capital/equity invested in ALSL.  P2 had a subsidiary                  
               (S) that was a member of a limited liability company                   
               (L) that was involved in equipment leasing activities                  
               most of which arose in different years.  Ps claim that                 
               the activities are aggregated under sec.                               
               465(c)(2)(B)(i), I.R.C., into a single activity for the                

               1 Cases of the following petitioners are consolidated                  
          herewith:  Hubert Enterprises, Inc. and Subs., docket No.                   
          10669-03; and Hubert Holding Co., docket No. 16798-03.                      

Page:   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