Fischer v. Commissioner
United States Tax Court
Petitioner in 1902 started a business which he operated as a sole proprietor until January 1, 1939. He had two sons, born in 1905 and 1909, respectively. When each son became 16 he commenced working in the business during vacations without compensation. Upon graduation from college each son then worked full time in the business, with the idea of learning all of its phases.
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Petitioner in 1902 started a business which he operated as a sole proprietor until January 1, 1939. He had two sons, born in 1905 and 1909, respectively. When each son became 16 he commenced working in the business during vacations without compensation. Upon graduation from college each son then worked full time in the business, with the idea of learning all of its phases. Each was paid a small compensation at first, which in 1934 was increased to include 10 percent of the profits, and in 1935 was again increased to include 33 1/3 percent of the profits. During the years 1936, 1937, and 1938…
1Opinion of the Court
OPINION.
Black, Judge:
The issue which is involved in the instant case is whether, in each of the taxable years 1939 and 1940, a valid and legal partnership existed between petitioner and 1ns two sons, William, Jr., and Herman, in the ownershi p and operation of the Fischer Machine Co., a prosperous business engaged in the manufacture and sale of specialized machines and tools. The applicable sections of the statute are sections 181, 182, 183, and 3797 of the Internal Revenue Code, printed in the margin.1 Petitioner contends that a legal partnership did exist between himself and his two sons…
2Cases cited8 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Harrison v. SchaffnerSupreme Court of the United States · 1941
3 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Fischer v. CommissionerUnited States Tax Court · 1945
- Fischer v. CommissionerUnited States Tax Court · 1947