Cobb v. Commissioner
United States Tax Court
1. For several years prior to December 1, 1945, petitioner was a member of a partnership engaged in the canvas business. Both prior and subsequent to his marriage in March 1945, his wife was employed in the office of the partnership as a secretary-bookkeeper. On November 30, 1945, when the partnership's sales had doubled those of the preceding year, petitioner purchased the interest of his partner and entered into an oral agreement of partnership with his wife.
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1. For several years prior to December 1, 1945, petitioner was a member of a partnership engaged in the canvas business. Both prior and subsequent to his marriage in March 1945, his wife was employed in the office of the partnership as a secretary-bookkeeper. On November 30, 1945, when the partnership's sales had doubled those of the preceding year, petitioner purchased the interest of his partner and entered into an oral agreement of partnership with his wife. Held, under the facts, the petitioner and his wife did not in good faith and acting with a business purpose intend to join together…
1Opinion of the Court
OPINION.
HaRlan, Judge'.
The first question is whether the income of the Cobb Canvas Co. for the taxable years is income of a partnership composed of petitioner and his wife, or is the income of the petitioner alone. The Supreme Court of the United States, in Culbertson v. Commissioner, 337 U. S. 733, has stated that a test to be applied in arriving at the answer to such a question is whether “the parties in good faith and acting with a business purpose intended to join together in the present conduct of the enterprise.” To the same effect see Commissioner v. Tower, 327 U. S. 280. In these…
2Cases cited3 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TowerSupreme Court of the United States · 1946
- Goodman v. CommissionerUnited States Tax Court · 1946
3Cited by2 opinions
- Cobb v. CommissionerUnited States Tax Court · 1949
- Page v. CommissionerUnited States Tax Court · 1970