context: In this case, the Kays argue that the language is clear, but they further contend that the Partnership's tax sheltering purpose informs the partnership provisions and unequivocally establishes the Note partners' personal liability for calls related to the Notes. The Kays are correct in their assertion that, in order to qualify for a pass-through deduction at the time that the Partnership was formed, the relevant tax laws required a limited partner to be "at risk", i.e., the limited partner had to assume personal and ultimate liability for certain debts.
citation_a.signal: see
citation_a.parenthetical: same, both under I.R.C. SS 465 and under SS 752
citation_a.sentence: See Pritchett v. Commissioner, 827 F.2d 644, 646^47 (9th Cir.1987) (finding that limited partner’s obligation to make additional capital contributions under the partnership agreement satisfied the “at risk” requirement of I.R.C. § 465); Gefen v. Commissioner, 87 T.C. 1471, 1499-1502, 1986 WL 22070 (1986) (same, both under I.R.C. § 465 and under § 752); cf. Goatcher v. United States, 944 F.2d 747, 750 (10th Cir.1991) (finding that taxpayers, subchapter S shareholders, as mere guarantors of debt to corporation, were not “at risk,” and therefore not entitled to deductions).
citation_b.signal: cf.
citation_b.identifier: 944 F.2d 747, 750
citation_b.parenthetical: finding that taxpayers, subchapter S shareholders, as mere guarantors of debt to corporation, were not "at risk," and therefore not entitled to deductions
citation_b.sentence: See Pritchett v. Commissioner, 827 F.2d 644, 646^47 (9th Cir.1987) (finding that limited partner’s obligation to make additional capital contributions under the partnership agreement satisfied the “at risk” requirement of I.R.C. § 465); Gefen v. Commissioner, 87 T.C. 1471, 1499-1502, 1986 WL 22070 (1986) (same, both under I.R.C. § 465 and under § 752); cf. Goatcher v. United States, 944 F.2d 747, 750 (10th Cir.1991) (finding that taxpayers, subchapter S shareholders, as mere guarantors of debt to corporation, were not “at risk,” and therefore not entitled to deductions).