(DOWNLOAD) "Partner v. Commissioner of Internal Revenue" by Fifth Circuit U.S. Court of Appeals ~ Book PDF Kindle ePub Free

eBook details

Title: Partner v. Commissioner of Internal Revenue
Author : Fifth Circuit U.S. Court of Appeals
Release Date : January 06, 1999
Genre: Law,Books,Professional & Technical,
Pages : * pages
Size : 68 KB

Description

Appeal from the Decision of the United States Tax Court I. FACTUAL AND PROCEDURAL BACKGROUND In 1981, Briarpark was organized as a Texas limited partnership (""the partnership""). James C. Motley (""Motley"") was a general partner. During 1983 and 1984, the partnership acquired a three-acre parcel of land at 2925 Briarpark Road, Houston, Texas (""the property"") and constructed a 12-story office building on it. On September 27, 1983, the partnership borrowed $21,600,000 from InterFirst Bank Houston, N.A. (""InterFirst"") to finance the acquisition of the property and the construction of the building. Motley personally guaranteed the principal, interest, penalties and fees on the loan. By December 31, 1986, the outstanding principal and accrued interest due on the loan was $24,700,000. On May 28, 1987, the partnership and InterFirst modified and extended the original loan pursuant to a modified loan agreement. At the time, InterFirst estimated that the fair market value of the property was approximately $17,000,000. The original loan was converted from a recourse to a non-recourse obligation, and accrued but unpaid interest in the amount of $3,100,000 was capitalized. Motley's personal obligation under his guarantee was limited to $5,000,000. Also on May 28, 1987, Briarpark obtained a $1,500,000 loan for tenant improvements (""build-out loan"") on a non-recourse basis.