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for its calendar years 1993, 1994, and 1995. After concessions,1
the sole issue for consideration is whether, for its year 1993,
Bentley Court must recapture $528,747 of low-income housing
credits claimed on its income tax returns for 1990, 1991, and
1992.
FINDINGS OF FACT2
At the time the petition in this case was filed, Bentley
Court’s principal place of business was in Columbia, South
Carolina.
Bentley Court, a limited partnership, was formed in 1989.
The general partners were Edwin Lewis II (Lewis) and an entity he
controlled. During 1990 and 1991, Bentley Court constructed an
apartment complex in Columbia, South Carolina. The South
Carolina State Housing Finance and Development Authority
allocated to the complex low-income housing credits for which
Bentley Court claimed Federal income tax low-income housing
credits and qualified basis in the following amounts:
1 Petitioner originally alleged error in many of
respondent’s determinations, one of which was entitlement to low-
income housing credits for 1993, 1994, and 1995. However,
petitioner now concedes a portion of the forgiveness of
indebtedness income for 1993 and all of the low-income housing
credits for 1993, 1994, and 1995. Respondent concedes the
deductibility of the legal fees and the remaining portion of the
forgiveness of indebtedness income for 1993 and depreciation
deductions for 1993, 1994, and 1995.
2 The parties’ stipulation of facts is incorporated by this
reference.
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