Lehman v. Commissioner
United States Tax Court
Under a partnership agreement petitioners on a calendar year basis became entitled as of the end of the partnership fiscal year, March 31, 1948, to credits totaling $ 10,000 on the partnership books, this sum to be deducted from the capital accounts of the other partners. The credits were made to petitioners' capital accounts and the book entries were actually made on November 1, 1948. Held, the $ 10,000 was income to petitioners in 1948.
1Opinion of the Court
OPINION.
Tietjens, Judge:
On the question as to whether or not the transactions set out in our findings resulted in taxable income, petitioners’ argument is that the credit on the books to their account was never intended to be withdrawn from the partnership, was merely ah adjustment of the capital accounts, and was never actually or constructively received by petitioners. Further, that under the Florida statute governing limited partnerships the petitioners could not have received anything from their increased capital contributions until after dissolution of the partnership and satisfaction…
2Cases cited1 opinion
- Guggenheimer v. CommissionerUnited States Tax Court · 1952
3Cited by4 opinions
- Leonard A. Farris and Katherine Farris v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1955
- Farris v. CommissionerUnited States Tax Court · 1954
- Farris v. CommissionerUnited States Tax Court · 1954
- Lehman v. CommissionerUnited States Tax Court · 1953