-18-
section 301.6231(a)(3)-1, Proced. & Admin. Regs., does not
clearly answer the question of whether determinations regarding
contributions to a partnership’s capital and the effect of those
contributions on the partner’s basis and at-risk amounts are
partnership items. See the discussion of section 301.6231(a)(3)-
1, Proced. & Admin. Regs., in Hambrose Leasing 1984-5 Ltd. Pship.
v. Commissioner, 99 T.C. 298, 306-312 (1992).
In Hambrose Leasing, we interpreted section 301.6231(a)(3)-
1, Proced. & Admin. Regs., in the context of determining whether
individual partners were at risk under section 465(b)(4). After
carefully considering the provisions of section 301.6231(a)(3)-1,
Proced. & Admin. Regs., and the arguments of the parties therein,
we stated the following:
We conclude, based on the circumstances of this
case, that the determination of amounts at risk with
respect to partnership liabilities personally assumed
by individual partners is not a partnership item, but
is an affected item, which can be dealt with only in a
proceeding involving the partners and not in this
partnership level proceeding. Sec. 6226(f); N.C.F.
Energy Partners v. Commissioner, 89 T.C. 741, 743
(1987). We base this conclusion on the definition of
“partnership item” in section 6231 (“required to be
taken into account for the partnership’s taxable
year”), our interpretation of the pertinent
regulations, in light of the statute (an approach which
makes it unnecessary for us to rule on petitioners’
contention that the regulations are invalid), and the
application of the statute and regulations in the
decided cases. In short, the application of section
465 as such is not an issue appropriate for a
determination in a partnership level proceeding. See
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