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.
16798-03.
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.
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