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alternative, whipsaw positions, determining that the partnership
had engaged in a sale or exchange of the plant as of various
dates in 1985, 1986, 1987, and 1988, requiring recapture of tax
credits, recognition of gain resulting from the discharge of the
indebtedness, and other tax consequences as of these various
alternative dates. In the FPAA for the partnership’s 1985 tax
year, respondent asserted that the partnership engaged in a sale
or exchange of the project and related assets on or before August
1, 1985. In the FPAA for the partnership’s 1986 tax year,
respondent asserted that the partnership engaged in a sale or
exchange of the plant and related assets on June 30, 1986, or in
the alternative, on July 14, 1986. In the FPAA for the
partnership’s 1987 tax year, respondent asserted that the
partnership engaged in a sale or exchange of the plant and
related assets on January 1, 1987, or in the alternative, on
November 2, 1987. In the FPAA for the partnership’s 1988 tax
year, respondent asserted that the partnership engaged in a sale
or exchange of the project and related assets on January 1, 1988.
In each of these FPAAs, respondent asserted identically: “The
full amount of the outstanding nonrecourse mortgage, including
all accrued interest, is included in the amount realized on
disposition of the plant.”
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