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Federal tax liabilities is summarized in paragraphs 23(h) and (q)
of his amendment to answer as follows:
Mr. Winn Mr. Curtis
Sec. 752(b) deemed
distribution of money1 $14,892,855 $4,402,714
Sec. 731(c)
distribution of money
(cash/securities)2 6,345,394 2,274,191
Total distribution of money 21,238,249 6,676,905
Basis3 (12,879,151) (3,798,080)
Total gain4 8,359,098 2,878,825
1 Respondent treats as a distribution of money to Mr. Winn
and Mr. Curtis, under sec. 752(b), only the relief from
Countryside’s liabilities existing as of Jan. 1, 2000. He
disregards the additional liabilities triggered by the CB&T loans
of $8.55 million to Countryside and $3.4 million to MP, Mr.
Winn’s and Mr. Curtis’s relief from the former, and the
modification of their respective shares of Countryside’s
liabilities resulting from Mr. Winn’s transfer of a 5-percent
limited partnership interest in Countryside to Mr. Curtis, all of
which are taken into account by participating partner on exhibits
attached to the motion. See apps. B and C.
2 These amounts are apparently derived from line 23
(Distributions of property other than money) of Mr. Winn’s and
Mr. Curtis’s Schedules K-1, Partner’s Share of Income, Credits,
Deductions, etc., attached to Countryside’s 2000 return.
3 Respondent treats as Mr. Winn’s and Mr. Curtis’s bases in
Countryside on the date of the liquidating distribution their
bases as of Jan. 1, 2000, thereby disregarding the basis
modifications resulting from the CB&T loans to Countryside and
MP, Mr. Winn’s transfer of a 5-percent limited partnership
interest in Countryside to Mr. Curtis, Countryside’s cash
distributions to Mr. Winn and Mr. Curtis during 2000, and
Countryside’s 2000 loss, all of which are taken into account by
participating partner. See apps. B and C.
4 The total alleged gain to both Mr. Winn and Mr. Curtis is
$11,237,923. That amount differs from both the gain to Mr. Winn
and Mr. Curtis alleged in the FPAA ($12,055,192), which
respondent conceded at the hearing is incorrect, and the revised
alleged gain to Mr. Winn and Mr. Curtis, which respondent’s
counsel stated at the hearing is $11,427,993. There is no
explanation in the record for the discrepancy between the first
and third amounts of alleged gain to Mr. Winn and Mr. Curtis.
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Last modified: March 27, 2008