Lusthaus v. Commissioner
United States Tax Court
Husband and Wife Partnership. -- Petitioner entered into a partnership agreement with his wife in 1940, purporting to make her an equal partner in a furniture business which he had operated for a number of years. He gave her $ 50,000, which she immediately returned to him, with her promissory notes for $ 55,000 and a negligible amount of her own funds, in payment for her one-half interest.
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Husband and Wife Partnership. -- Petitioner entered into a partnership agreement with his wife in 1940, purporting to make her an equal partner in a furniture business which he had operated for a number of years. He gave her $ 50,000, which she immediately returned to him, with her promissory notes for $ 55,000 and a negligible amount of her own funds, in payment for her one-half interest. Thereafter, she contributed no additional capital and rendered only casual services to the business, as she had always done. Held, that all of the profits of the business are taxable to petitioner as his…
1Opinion of the Court
A. L. Lusthaus, Petitioner, v. Commissioner of Internal Revenue, Respondent
Lusthaus v. Commissioner
Docket No. 112702
United States Tax Court
3 T.C. 540; 1944 U.S. Tax Ct. LEXIS 159;
March 29, 1944, Promulgated
Decision will be entered for the respondent.
Husband and Wife Partnership. -- Petitioner entered into a partnership agreement with his wife in 1940, purporting to make her an equal partner in a furniture business which he had operated for a number of years. He gave her $ 50,000, which she immediately returned to him, with her promissory notes for $ 55,000 and a negligible amount of her own…
2Cases cited2 opinions
- Tower v. CommissionerUnited States Tax Court · 1944
- Lusthaus v. CommissionerUnited States Tax Court · 1944