Woodbury v. Commissioner
United States Tax Court
Held: 1. Reallocation of partnership income determined on the basis of services rendered and respective capital interests of the partners. 2. Income from the sale of certain cattle was constructively received in 1958. 3. In 1960 the partnership made a nontaxable exchange of cattle under sec. 1031(a), I.R.C. 1954. 4. Petitioners are not liable for negligence penalties.
1Opinion of the Court
OPINION
Issue 1. — Reallocation of Partnership Income
Petitioners assert that they intended to create a partnership in which Glenn and Leo would be equal partners; that Glenn gave Leo a one-half interest in the partnership assets and liabilities in accordance with this intent; and that the partnership was actually operated with Glenn and Leo as equal partners. While the respondent agrees that Glenn and Leo formed a family partnership, he contends that the equal distribution of partnership gains and losses by the partners is inconsistent with the applicable statute and regulations. Section…
2Cases cited23 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- National Licorice Co. v. National Labor Relations BoardSupreme Court of the United States · 1940
- Helvering v. OwensSupreme Court of the United States · 1939
- United States v. PfisterCourt of Appeals for the Eighth Circuit · 1953
- James Alderson, Surviving Husband and Estate of Clarissa E. Alderson, Deceased, James Alderson v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
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3Cited by66 opinions
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- Bell Lines, Inc. v. United StatesCourt of Appeals for the Fourth Circuit · 1973
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