Klein v. Commissioner
United States Tax Court
Petitioner owned a one-half interest in a partnership known as "Allen's." His brother owned the other one-half. Petitioner's wife performed valuable services for the partnership in a managerial, buying, and selling capacity but she was not a partner and did not receive a salary. Petitioner agreed with his wife that in consideration for her valuable contribution of services she would receive 25 per cent of his 50 per cent share in the profits of Allen's.
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Petitioner owned a one-half interest in a partnership known as "Allen's." His brother owned the other one-half. Petitioner's wife performed valuable services for the partnership in a managerial, buying, and selling capacity but she was not a partner and did not receive a salary. Petitioner agreed with his wife that in consideration for her valuable contribution of services she would receive 25 per cent of his 50 per cent share in the profits of Allen's. Held, that petitioner and his wife were joint venturers and petitioner's interest in the joint venture was 75 per cent of his 50 per cent…
1Opinion of the Court
OPINION.
Black, Judge:
The issue raised here is whether in 1943 petitioner is taxable in full for his share of one-half of the profits of Allen’s, or for only 75 per cent of his share. Allen’s was a retail women’s clothing store. Allen’s was a partnership composed of petitioner and his brother, and was managed by petitioner and his wife. Petitioner’s wife had many years of business experience and was responsible for buying, displays, pricing merchandise, and much of the general management. Her services were managerial, valuable, and essential to the conduct of the business. In the fall of 1943,…
2Cases cited8 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Burnet v. LeiningerSupreme Court of the United States · 1932
- Tompkins v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1938
- Rupple v. KuhlCourt of Appeals for the Seventh Circuit · 1949
- United States v. AtkinsCourt of Appeals for the Fifth Circuit · 1951
3 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Evans v. CommissionerUnited States Tax Court · 1970
- Carnegie Productions, Inc. v. CommissionerUnited States Tax Court · 1973
- Elliston v. CommissionerUnited States Tax Court · 1984
- Walsh Construction Company v. ChurchDistrict Court, S.D. New York · 1965
- Boyt v. CommissionerUnited States Tax Court · 1952
6 more not listed; retrieve them via the Exa API.