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The Roses’ Share of Zephyr’s Items of Income and
Loss ................................................. 94
A. As Reported on Rose’s Schedules K-1 ........ 94
B. As Reported on the Roses’ Income Tax
Returns .................................... 95
C. IRS Determinations ......................... 96
Transactions Involving SLPC, TPC, and the Roses
During 1994 and 1995 ................................. 97
A. As Described in SLPC and the Roses’ Income
Tax Returns ................................ 99
B. IRS Determinations ......................... 100
Imposition of Accuracy-Related Penalties by the IRS .. 101
OPINION ................................................... 102
Procedural Matters ................................... 102
Issue #1--Transfers From PK Ventures to the Zephyr
Purchasers ................................. 104
Issue #2--Transfers From PK Ventures, TBPC, and TPTC
to PKVI LP ................................. 111
Issue #3--Transfers From PK Ventures, TBPC, and TPTC
to Zephyr .................................. 118
Issues #4 and #5--Partners’ Basis in PKVI LP ......... 119
Issue #6--The Roses’ Basis in Their Zephyr Interest .. 123
Issue #7--The Roses’ Basis in Their SLPC Interest .... 132
Issue #8--Reasonable Compensation .................... 138
Issue #9--Penalties .................................. 151
COHEN, Judge: Respondent determined deficiencies and
penalties with respect to the Federal income taxes for petitioner
PK Ventures, Inc. and Subsidiaries (PKV&S), for 1990, 1991, 1992,
and 1993 as follows:
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Last modified: May 25, 2011