Smith v. Commissioner
United States Tax Court
Petitioner, a member of a partnership engaged in business in Texas, sold his partnership interest, which he had owned for more than one year, to one of his copartners and two other individuals. Held, the gain realized upon the sale was a long term capital gain.
1Opinion of the Court
OPINION.
Haelan, Judge'.
The petitioner contends that he sold an interest in a partnership, a capital asset, and that the gain realized is therefore a capital gain.
The respondent contends that under the law of Texas, the sale by a partner of his interest in a partnership dissolves the partnership; that the Hyman Supply Co. was dissolved at the moment petitioner sold his interest; that accordingly the petitioner sold and the purchasers received an undivided interest in the specific assets of the firm; and that the gain from this transaction should be taxed as ordinary income.
On brief the…
2Cases cited6 opinions
- Oliphant v. MarkhamTexas Supreme Court · 1891
- Lehman v. CommissionerUnited States Tax Court · 1946
- Windom National Bank v. KleinSupreme Court of Minnesota · 1934
- Sherk v. First Nat. Bank of HerefordTexas Commission of Appeals · 1918
- State v. ElsburyNevada Supreme Court · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Swiren v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1950
- Woody v. CommissionerUnited States Tax Court · 1952
- United States v. ShapiroCourt of Appeals for the Eighth Circuit · 1949
- Estate of Nitto v. CommissionerUnited States Tax Court · 1949
- Evans v. CommissionerUnited States Tax Court · 1970
22 more not listed; retrieve them via the Exa API.