Bellamy v. Commissioner
United States Tax Court
In 1943, when they were both in the armed service, petitioner and his son, then 18 years old and without business experience, executed a purported partnership agreement covering the ownership and operation of a wholesale drug business which petitioner, as sole owner, had conducted for more than 20 years. Pursuant to the agreement, petitioner was to have a 51 per cent interest and the son 49 per cent.
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In 1943, when they were both in the armed service, petitioner and his son, then 18 years old and without business experience, executed a purported partnership agreement covering the ownership and operation of a wholesale drug business which petitioner, as sole owner, had conducted for more than 20 years. Pursuant to the agreement, petitioner was to have a 51 per cent interest and the son 49 per cent. A short time later petitioner had the son give him a demand note in amount of 49 per cent of the net book value of the business, although he did not regard the note as being equal in amount to a…
1Opinion of the Court
OPINION.
TueneR, Judge:
The primary issue is whether Robert, petitioner’s son, should be recognized in the taxable years 1943 through 1945 as a partner with petitioner in the wholesale drug business conducted under the name of Robert R. Bellamy & Son.
That Robert was not in reality a partner is in our opinion clearly shown by the facts, and little discussion of the issue is indicated or required. The so-called partnership agreement was signed by Robert while a student at the University of North Carolina in March, 1943. He was then 18 years of age and had been enlisted in the V-l Program of the…
2Cases cited4 opinions
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lucas v. Forty-Fourth General Assembly of ColoradoSupreme Court of the United States · 1964
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Blumberg v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- Bellamy v. CommissionerUnited States Tax Court · 1950