Hubert Enterprises, Incorporated, Successor By Merger To Hubert Holding Company - Page 2




                                         -2-                                          
               capital accounts.  Pursuant to the provision, H, a                     
               member of L with a 99-percent interest therein, took                   
               into account its proportionate share of L’s recourse                   
               debt in computing its at-risk amounts under sec.                       
               465(b)(2)(A), I.R.C., for H’s taxable years ended in                   
               July 2000 and 2001.                                                    
                    Held:  For Federal income tax purposes, the                       
               provision is inapplicable to H’s taxable year ended in                 
               2000 because the amendment was made too late under sec.                
               761(c), I.R.C., and other provisions, to be included in                
               L’s operating agreement for that year.                                 
                    Held, further, H may not take into account L’s                    
               recourse debt for H’s taxable year ended in 2001                       
               because H was not personally liable for the repayment                  
               of that debt under sec. 465(b)(2)(A), I.R.C.                           


               William F. Russo and R. Daniel Fales, for petitioner.                  
               Gary R. Shuler, Jr., for respondent.                                   


                SUPPLEMENTAL MEMORANDUM FINDINGS OF FACT AND OPINION                  

               LARO, Judge:  This case is before the Court on remand from             
          the Court of Appeals for the Sixth Circuit.  We filed our initial           
          report as Hubert Enters., Inc. & Subs. v. Commissioner, 125 T.C.            
          72 (2005) (Hubert I).  Hubert I was a consolidation of three                
          cases, and the Court of Appeals for the Sixth Circuit affirmed              
          our decisions in two of those cases.  See Hubert Enters., Inc. v.           
          Commissioner, 230 Fed. Appx. 526 (6th Cir. 2007), affg. in part,            
          vacating in part and remanding 125 T.C. 72 (2005).  The Court of            
          Appeals for the Sixth Circuit vacated the remaining decision and            
          remanded the case to this Court to decide, after allowing the               
          parties to develop the record more fully, whether the deficit               






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

Last modified: March 27, 2008