Eckhard v. Commissioner
United States Tax Court
1. A wife furnished capital to purchase approximately the first one-third of corporate stock purchased in husband's name, the remainder being purchased later from profits. She worked full time in the business. Later, after corporate dissolution, reports repeatedly showed business conducted in her husband's name. No records ever indicated the wife to be a partner and there was no written partnership agreement or any agreement as to sharing losses.
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1. A wife furnished capital to purchase approximately the first one-third of corporate stock purchased in husband's name, the remainder being purchased later from profits. She worked full time in the business. Later, after corporate dissolution, reports repeatedly showed business conducted in her husband's name. No records ever indicated the wife to be a partner and there was no written partnership agreement or any agreement as to sharing losses. Returns were filed on the community basis in Oklahoma prior to a holding that the community property law of that state was ineffective to divide…
1Opinion of the Court
OPINION.
Disney, Judge:
We shall first examine the question as to whether the petitioners are to be taxed in equal amounts as partners upon the profits of General Tires. The petitioners’ argument is, in effect, that Mildred Eckhard furnished the original capital with which 50 shares of stock in the Ohio corporation were purchased in 1941, that she contributed services, in effect, as much as did her husband, and that, therefore, along the lines laid down in Commissioner v. Tower, 327 U. S. 280, she should be recognized as a partner in the business. The Commissioner, on the other hand, in…
2Cases cited4 opinions
- Commissioner v. TowerSupreme Court of the United States · 1946
- Commissioner v. HarmonSupreme Court of the United States · 1944
- Harmon v. CommissionerUnited States Tax Court · 1942
- Katterhenry v. WilliamsonSupreme Court of Oklahoma · 1920
3Cited by12 opinions
- Hughes v. CommissionerUnited States Tax Court · 1964
- Jerome Castree Interiors, Inc. v. CommissionerUnited States Tax Court · 1975
- Lacy Contracting Co. v. CommissionerUnited States Tax Court · 1971
- Cozzens v. CommissionerUnited States Tax Court · 1953
- Commissioner of Internal Revenue v. Mildred EckhardCourt of Appeals for the Tenth Circuit · 1950
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