Coates v. Commissioner
United States Tax Court
Where accounting partnership agreement provided for payment to estates of deceased partners of a share in partnership earnings for five years after death of partner, in addition to the payment of all undrawn earnings, and share of work in progress at the time of his death, the partnership being a personal service organization having no considerable capital or tangible property, held, income of partnership earned after deaths of deceased partners and paid to their estates…
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Where accounting partnership agreement provided for payment to estates of deceased partners of a share in partnership earnings for five years after death of partner, in addition to the payment of all undrawn earnings, and share of work in progress at the time of his death, the partnership being a personal service organization having no considerable capital or tangible property, held, income of partnership earned after deaths of deceased partners and paid to their estates pursuant to partnership agreement is not taxable to surviving partners.
1Opinion of the Court
OPINION.
Kern, Judge:
The only question before us is whether the income of the partnership which is payable to the estates of deceased partners pursuant to the terms of the partnership agreement is taxable to the individual surviving partners.
Section 182 of the Internal Revenue Code provides that:
In computing the net income of each partner, he shall include, whether or not distribution is made to him * * *(c) His distributive share of the ordinary net income * * * of the partnership * * *.
Respondent has included the shares of the partnership income payable to the estates of the deceased…
2Cases cited2 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- MacDonald v. CommissionerUnited States Tax Court · 1944
3Cited by34 opinions
- Carty v. CommissionerUnited States Tax Court · 1962
- Tighe v. CommissionerUnited States Tax Court · 1959
- Carl A. Prater and Della Jane C. Prater, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Estate of Remington v. CommissionerUnited States Tax Court · 1947
- Lowenstein v. CommissionerUnited States Tax Court · 1949
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