6
for 1995. Handler filed Form 8082, Notice of Inconsistent
Treatment or Amended Return, disputing the allocation for both
years, claiming he was no longer a partner in W&R.
Sargent, on April 1, 1984, pursuant to a written agreement
(Sargent’s agreement) withdrew as an equity partner, but
continued on as a contract partner. Sargent was to be repaid his
capital account balance of $72,000 in annual installments of
$5,000 commencing March 31, 1985, and was also to receive income
for life on a graduated scale not tied to profits and a death
benefit. An appendix attached at the end of this opinion
summarizes the capital accounts as calculated for 1993 and 1994
by W&R for each of the withdrawing partners. According to the
calculations by W&R, Sargent was paid all sums due to him in
1994.
The calculations of capital accounts by W&R also establish
that in 1993, Tilton, consistent with Handler, was repaid the
portion of his contributed capital that was in excess of his
capital loans, and his capital loans were paid off from his
remaining contributed capital. W&R’s calculations also establish
that Hahn had made no capital contributions which would require
repayment. The calculations by W&R also show that no income was
allocated to any of the withdrawing partners in 1995.
On the basis of those calculations by W&R, as of December
31, 1994, each withdrawing partner had the following deficit
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011