JOHNSON

v.

JOHNSON ET AL.

Citator

Cited By

• Goulding v. United States, 957 F.2d 1420 (7th Cir. 1992)
  …t the taxpayer’s basis for depreciation cannot include contingent debt which is unlikely ever to be paid. See Durkin v. C.I.R., 872 F. 2d 1271, 1277 (7th Cir.) (citing Estate of Franklin v. Commissioner, 544 F. 2d 1045 (9th Cir.1976)), cert. denied, 493 U.S. 824, 110 S.Ct. 84, 107 L.Ed.2d 50 (1989); Rev.Rul. 77-110, 1977-1 C.B. 58. Moreover, although limited partners may properly include in the basis of their partnership interest partnership debt for which they are personally at risk, debt which is continge…
• Lukens v. Commissioner OF Internal Revenue, 945 F.2d 92 (5th Cir. 1991)
  …It is well settled that interest is deductible only if paid with respect to genuine indebtedness. See Knetsch v. United States, 364 U.S. 361, 81 S.Ct. 132, 5 L.Ed.2d 128 (1960); Durkin v. Commissioner, 872 F. 2d 1271, 1278 (7th Cir.), cert. denied, 493 U.S. 824, 110 S.Ct. 84, 107 L.Ed.2d 50 (1989). Other courts of appeals have disallowed all interest deductions where the nonrecourse debt was found not to be genuine. See, e.g., [*98] Lebowitz v. Commissioner, 917 F. 2d 1314, 1318-19 (2d Cir.1990) (disagreei…
• HGA Cinema Tr. v. Commissioner OF Internal Revenue, 950 F.2d 1357 (7th Cir. 1991)
  …h Cir.) (“When ... the debt used to purchase an asset is unlikely to be paid by the taxpayer, that debt does not represent a bona fide capital investment by the taxpayer and will be excluded from the depre-ciable basis of the asset.”), cert. denied, 493 U.S. 824, 110 S.Ct. 84, 107 L.Ed.2d 50 (1989). See also Lewis v. Commissioner of Internal Revenue, 328 F. 2d 634, 635 (7th Cir.) (“Regardless of a taxpayer’s motives, where a paper transaction lacks substance and no genuine indebtedness is created ... no i…