Keenan v. Comm'r
United States Tax Court
Prior to January 1941 petitioners, husband and wife, operated an auto parts concern as equal partners. The success of the business was due primarily to the activities of the husband, who was in complete control of the conduct of the business. On January 1, 1941, each of the petitioners gave one-half of his interest in the business to one of their two minor sons. The firm's books were set up to show an equal capital account for all parties.
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Prior to January 1941 petitioners, husband and wife, operated an auto parts concern as equal partners. The success of the business was due primarily to the activities of the husband, who was in complete control of the conduct of the business. On January 1, 1941, each of the petitioners gave one-half of his interest in the business to one of their two minor sons. The firm's books were set up to show an equal capital account for all parties. There was no formal partnership agreement executed at the time. The sons performed little service for the business and their withdrawals from their…
1Opinion of the Court
OPINION.
Hill, Judge-.
The evidence shows that the petitioners conducted a business as equal partners during the years 1934 to January 1941 and that the business grew substantially during that period. The evidence further shows that during that period Keenan, Sr., was the dominant partner and ran the business as he pleased. His wife’s interest therein, which is not challenged by the respondent, arose by virtue of a contribution of capital in the days when the partnership was first organized. Her participation in the management of the business was negligible. She was entirely content to let her…
2Cases cited2 opinions
- Mauldin v. CommissionerUnited States Tax Court · 1945
- Greenberg v. CommissionerUnited States Tax Court · 1945
3Cited by4 opinions
- Monroe v. CommissionerUnited States Tax Court · 1946
- Hiram W. Evans v. CommissionerUnited States Tax Court · 1946
- Keenan v. Comm'rUnited States Tax Court · 1945
- Monroe v. CommissionerUnited States Tax Court · 1946