Carriage Square, Inc. v. Commissioner
United States Tax Court
Petitioner was the only general partner of Sonoma and, as such, it provided all the services necessary for the conduct of the partnership business, contributed $ 556 to capital, assumed substantially all risk of loss, and utilized its business contacts in obtaining large loans required by the partnership business. Each of five trusts contributed $ 1,000 to Sonoma's capital in return for 18 percent each of its profits.
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Petitioner was the only general partner of Sonoma and, as such, it provided all the services necessary for the conduct of the partnership business, contributed $ 556 to capital, assumed substantially all risk of loss, and utilized its business contacts in obtaining large loans required by the partnership business. Each of five trusts contributed $ 1,000 to Sonoma's capital in return for 18 percent each of its profits. Sonoma was able to borrow, and did borrow, substantially all the capital it needed for the conduct of its business, because a nonpartner guaranteed its debts. Held, Sonoma was…
1Opinion of the Court
Carriage Square, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Carriage Square, Inc. v. Commissioner
Docket No. 10635-75
United States Tax Court
69 T.C. 119; 1977 U.S. Tax Ct. LEXIS 33;
October 26, 1977, Filed
Decision will be entered for the respondent.
Petitioner was the only general partner of Sonoma and, as such, it provided all the services necessary for the conduct of the partnership business, contributed $ 556 to capital, assumed substantially all risk of loss, and utilized its business contacts in obtaining large loans required by the partnership business. Each of five…
Also in this document: Concurrence; Dissent · Tannenwald; Dissent · Hall.
2Cases cited17 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TowerSupreme Court of the United States · 1946
- Strong v. CommissionerUnited States Tax Court · 1976
- McManus v. CommissionerUnited States Tax Court · 1975
- Estate of Gilman v. CommissionerUnited States Tax Court · 1975
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