Ritter v. Commissioner
United States Tax Court
Petitioner operated a contracting business as a sole proprietor. In 1942 he contracted with his son to become a general partner in his business. He failed to show, however, that during the two taxable years following the signing of the agreement, his son contributed to the partnership capital from his own funds, rendered any vital service to the partnership, or had any intention of rendering such service during the taxable years.
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Petitioner operated a contracting business as a sole proprietor. In 1942 he contracted with his son to become a general partner in his business. He failed to show, however, that during the two taxable years following the signing of the agreement, his son contributed to the partnership capital from his own funds, rendered any vital service to the partnership, or had any intention of rendering such service during the taxable years. Petitioner is liable for the tax on the partnership income distributable to the son during the taxable years.
1Opinion of the Court
OPINION.
Harlan, Judge:
Petitioner contends that the $9,000 contribution of Harold to the partnership was his own capital, since the father had promised his son before entering college in 1938 that if the son completed his engineering course the father would take him into partnership, and, since the boy did complete his engineering course, petitioner argues he was entitled to the $9,000 and the partnership status as a fulfillment of the father’s contractual obligation.
Our failure to find as a fact the existence of the contract is not a reflection on the effort and intention of the taxpayer…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Douglas v. CommissionerSupreme Court of the United States · 1944
- Monroe v. CommissionerUnited States Tax Court · 1946
3Cited by6 opinions
- Ritter v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1949
- Coca-Cola Bottling Co. v. CommissionerUnited States Tax Court · 1951
- Coca-Cola Bottling Co. v. CommissionerUnited States Tax Court · 1951
- Coca-Cola Bottling Co. v. CommissionerUnited States Tax Court · 1951
- Niederkrome v. CommissionerUnited States Tax Court · 1956
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