Countryside Limited Partnership, CLP Holdings, Inc., Tax Matters Partner - Page 3




                                        - 3 -                                         
                                 MEMORANDUM OPINION                                   

               HALPERN, Judge:  This case is a partnership-level action               
          based upon a petition filed pursuant to section 6226.1  The                 
          petition was filed in response to respondent’s notice of final              
          partnership administrative adjustment (the FPAA) dated October 8,           
          2004.  The case is before us on a motion for partial summary                
          judgment (the motion) by a participating partner, Arthur M. Winn            
          (participating partner or Mr. Winn), who until December 26, 2000,           
          was a limited partner in Countryside Limited Partnership                    
          (Countryside).  Respondent objects.                                         
               The FPAA alleges that a distribution by Countryside to Mr.             
          Winn and to Lawrence H. Curtis (Mr. Curtis), another limited                
          partner, on December 26, 2000, in liquidation of their                      
          partnership interests in Countryside resulted in $12,055,192 of             
          capital gain to Mr. Winn and Mr. Curtis, cumulatively, for that             
          year.  The FPAA also seeks to (1) deny to Countryside a basis               
          step-up, pursuant to section 734(b)(1)(B), for its property                 
          remaining after the distribution to Mr. Winn and Mr. Curtis, (2)            
          require a basis reduction pursuant to section 743(b)(2) for                 
          certain notes held by an L.L.C. in which Countryside, through               
          another L.L.C., owned a 98-percent interest, or, alternatively,             
          disregard both L.L.C.s, and (3) impose underpayment penalties               
          under section 6662.                                                         

               1  Unless otherwise noted, all section references are to the           
          Internal Revenue Code in effect for the year at issue, 2000, and            
          all Rule references are to the Tax Court Rules of Practice and              
          Procedure.                                                                  





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next 

Last modified: March 27, 2008