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OPINION
I. Date of the Partnership’s Disposition of Project Assets
We must decide the date as of which the partnership should be
treated for Federal tax purposes as having disposed of its
interest in the Great Plains project. The parties have
stipulated, consistent with respondent’s September 1986 letter
ruling, that “no sale, exchange or other disposition of the Great
Plains gasification plant or any assets related thereto by Great
Plains Gasification Associates occurred on or before May 22,
1986”.
On brief, respondent argues that the partnership disposed of
the project assets on June 30, 1986, the date of the foreclosure
sale.23 Respondent argues primarily that the foreclosure sale
itself constituted the disposition. Alternatively, respondent
argues that the partnership abandoned its interests in the project
on or by June 30, 1986.
Petitioner contends there was no disposition or abandonment
of the project assets until the foreclosure litigation terminated
on November 2, 1987.
23 In one sentence, respondent’s opening brief posits
alternatively that the disposition occurred on July 14, 1986,
“the date the sale was confirmed by the District Court”. Apart
from this fleeting reference, however, respondent’s brief makes
no separate argument for July 14, 1986, as the disposition date.
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