Mayes v. Commissioner
United States Tax Court
1. Taxpayer owned a 40 per cent interest in a partnership and agreed to pool his personal earnings from outside sources with partnership income.
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1. Taxpayer owned a 40 per cent interest in a partnership and agreed to pool his personal earnings from outside sources with partnership income. Held, taxpayer is chargeable with income in an amount not less than his personal earnings ( Lucas v. Earl, 281 U.S. 111) and not more than his distributive share of partnership net income, computed by including therein his personal earnings. 2. Correctness of various adjustments made by the Commissioner with respect to bad debts, depreciation, and other items determined. 3. Five per cent addition to tax because of negligence approved.
1Opinion of the Court
OPINION.
Raum, Judge:
1. Petitioner and his father were members of a partnership, the validity of which is not contested. The partnership, during 1948, was in the businesses of real estate rentals and public accounting. Partnership income was to be divided and distributed 40 per cent to petitioner and the remainder to his father. According tó the partnership agreement, personal incomes arising from sources outside of the partnership were to be contributed to the partnership and treated as partnership income. The petitioner earned $2,701.40 during 1948 for services rendered as a mechanic to…
2Cases cited4 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Lucas v. EarlSupreme Court of the United States · 1930
- Mayes v. United StatesCourt of Appeals for the Tenth Circuit · 1953
- Mayes v. United StatesDistrict Court, E.D. Oklahoma · 1952
3Cited by15 opinions
- Kaufman's, Inc. v. CommissionerUnited States Tax Court · 1957
- Schneer v. CommissionerUnited States Tax Court · 1991
- Bufalino v. CommissionerUnited States Tax Court · 1976
- AidooUnited States Tax Court · 1993
- Baris v. CommissionerUnited States Tax Court · 1965
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