Zager

842 F.2d 336 Unpublished Disposition NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Jack E. ZAGER, Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. No. 87-7235. United States Court of Appeals, Ninth Circuit. Submitted Feb. 5, 1988. * Decided March 9, 1988. Appeal from the United States Tax Court. Before JAMES R. BROWNING, Chief Judge, and NORRIS and O'SCANNLAIN, Circuit Judges. 1 MEMORANDUM ** 2 Zager filed a petition with the tax court, challenging the Commissioner's assessment of a personal income tax deficiency of $20,731.00 arising out of a "guaranteed payment" to Zager of $63,467.00. The tax court upheld the Commissioner, and Zager has appealed. We affirm. 3 The Commissioner argues that the $63,467.00 constitutes a liquidation of Zager's partnership interest under I.R.C. Sec. 736, taxable as ordinary income. Zager contends that the sum represents a non-taxable discharge of indebtedness under I.R.C. Sec. 108(a)(1)(B) as a result of his…