Delchamps v. Commissioner
United States Tax Court
1. The petitioners and their sister, equal partners in a chain grocery business, admitted petitioners' wives as partners, each petitioner contributing two-fifths of his interest to his wife and the sister a one-fifth of her interest to each wife. The admission of the wives as partners was necessary for the purpose of securing bank credit for the business.
Read the full summary
1. The petitioners and their sister, equal partners in a chain grocery business, admitted petitioners' wives as partners, each petitioner contributing two-fifths of his interest to his wife and the sister a one-fifth of her interest to each wife. The admission of the wives as partners was necessary for the purpose of securing bank credit for the business. Held, that the partnership was formed for a valid business purpose with a bona fide intention to form a business partnership. 2. Held, further, that partnership earnings are taxable to the partners in accordance with the partnership…
1Opinion of the Court
OPINION.
LeMere, Judge:
The principal issue here presented for decision is whether, during the taxable years 1942 and 1943, Lucile C. Delchamps and Virginia S. Delchamps were equal partners with their husbands and Annie M. Delchamps in a partnérship doing business as the Del-champs Grocery Co. Respondent determined that they were not and taxed the income distributed to them to their husbands, the petitioners here.
In the determination of whether the validity of the partnership here involved should be recognized for Federal tax purposes, the ultimate question for decision is whether the…
2Cases cited4 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
3Cited by19 opinions
- Moore v. CommissionerUnited States Tax Court · 1978
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Miller v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1950
- Theurkauf v. CommissionerUnited States Tax Court · 1949
- Hunt v. CommissionerUnited States Tax Court · 1990
14 more not listed; retrieve them via the Exa API.