Helvering v. Archbald

The facts in this ease are like those in Helvering v. Walbridge, except that on November 2,1928, that is, during the first of the two years in question, a new partner was taken into the firm. The Commissioner argues that this necessarily involved a dissolution of the old firm and the formation of another, and that a gain was “realized” at that time. Whatever was the rule at common law, the entrance of a new partner with the consent of all the old partners is not now a cause of dissolution under the Partnership Law of New York (Consol. Laws N. Y. c. 39) § 62. Cameron v. Com’r, 56 F.(2d) 1021…