Schreiber v. Commissioner
United States Tax Court
1. Petitioners in 1930 purchased as partners a going business in part with money furnished by their wives, one of whom was not repaid. In January 1937 each conveyed to his wife a one-fourth interest in the partnership, and in January 1938 they formed a partnership with the wives. The wives had no income from 1930 to 1936. The partnership activities continued to be managed by the husbands, the wives doing only minor work, generally in the evening at home.
Read the full summary
1. Petitioners in 1930 purchased as partners a going business in part with money furnished by their wives, one of whom was not repaid. In January 1937 each conveyed to his wife a one-fourth interest in the partnership, and in January 1938 they formed a partnership with the wives. The wives had no income from 1930 to 1936. The partnership activities continued to be managed by the husbands, the wives doing only minor work, generally in the evening at home. Only the petitioners could sign partnership checks. The husbands drew salaries. Held, that the Commissioner did not err in including all…
1Opinion of the Court
OPINION.
Disney, Judge:
Our problem here is whether the two petitioners are taxable upon all of the income of a partnership, or whether one-half shall be taxed to their wives.
* * * The issue is who earned the income and that issue depends on whether this husband and wife really intended to carry on business as a partnership. Those issues cannot be decided simply by looking at a single step in a complicated transaction. To decide who worked for, otherwise created or controlled the income, all steps in the process of earning the profits must be taken into consideration. [Commissioner v. Tower,…
2Cases cited5 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Overton v. CommissionerUnited States Tax Court · 1946
- Lusthaus v. CommissionerUnited States Tax Court · 1944
3Cited by2 opinions
- Durwood v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1947
- Schreiber v. CommissionerUnited States Tax Court · 1946