Knipp v. Commissioner
United States Tax Court
1. The decedent and petitioner Howard F. Knipp were on the calendar year basis for reporting income, and the partnership, of which they were the sole members with equal rights to share in profits, operated on the basis of a fiscal year ending January 31. The partnership agreement provided, in effect, that if a partner died during a taxable year of the firm his share of the profits would be the amount which he was entitled to receive as "salary."
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1. The decedent and petitioner Howard F. Knipp were on the calendar year basis for reporting income, and the partnership, of which they were the sole members with equal rights to share in profits, operated on the basis of a fiscal year ending January 31. The partnership agreement provided, in effect, that if a partner died during a taxable year of the firm his share of the profits would be the amount which he was entitled to receive as "salary." Held, that the death of decedent on November 21, 1947, terminated the partnership's taxable year. Held, further, that one-half of the partnership's…
1Opinion of the Court
OPINION.
Johnson, Judge:
Frank and Howard, members of the partnership, reported income on the basis of a calendar year. The partnership’s taxable year ended on J anuary 31. Involved in the proceedings relating to income tax is the basic question of whether the death of Frank on November 21,1947, terminated the partnership and its accounting year for income tax purposes.
Petitioners concede that the death of Frank worked a dissolution of the partnership but, relying primarily on Heiner v. Mellon, 304 U. S. 271, as to Howard, and distinguishing Guaranty Trust Co. v. Commissioner, 303 U. S. 493, as…
2Cases cited27 opinions
- Heiner v. MellonSupreme Court of the United States · 1938
- New York Life Insurance v. DunlevySupreme Court of the United States · 1916
- Commissioner of Internal Revenue v. Mnookin's EstateCourt of Appeals for the Eighth Circuit · 1950
- Guaranty Trust Co. v. CommissionerSupreme Court of the United States · 1938
- Commissioner of Internal Revenue v. TreganowanCourt of Appeals for the Second Circuit · 1950
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3Cited by5 opinions
- Maxcy v. CommissionerUnited States Tax Court · 1973
- Knipp v. CommissionerUnited States Tax Court · 1955
- Maxcy v. CommissionerUnited States Tax Court · 1973
- Ollendorff v. CommissionerUnited States Tax Court · 1959
- Watson v. CommissionerUnited States Tax Court · 1977