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the loan were recourse, the absence of any action by CareMatrix
during 2000 to collect the liability would in no way preclude
CareMatrix from commencing such a collection action after 2000.
Because CareMatrix had not forfeited its right to payment as of
the close of 2000, an expectation of repayment remained.
In addition to the aforementioned facts, respondent relied
on the precedent of Cozzi v. Commissioner, 88 T.C. 435 (1987).
In Cozzi v. Commissioner, supra at 437, a limited partnership,
Hap Production Co. (debtor), was formed to provide services
related to the production of motion picture films, and the
taxpayers invested in the debtor as limited partners.10 In 1975,
the debtor received a nonrecourse loan from Sargon Etablissement
(lender). Id. at 438. The debtor agreed to repay principal and
interest under a repayment schedule ending in 1980. Id. As
security for the nonrecourse loan, the lender retained a first
position lien in all proceeds generated under a motion picture
production agreement between the debtor and Map Films, Ltd. (the
production agreement).11 Id. The production agreement
10In Cozzi v. Commissioner, 88 T.C. 435, 447 (1987), we
stated, “The record makes clear that Hap was a tax shelter which
generated significant tax benefits”.
11Pursuant to the production agreement, the debtor agreed to
perform certain services related to the production of a motion
picture in return for the payment of $1,160,000 and certain costs
incurred by the debtor. Cozzi v. Commissioner, supra at 437.
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