Lehman v. Commissioner
United States Tax Court
Petitioner became a member of a partnership in 1908. The partners from time to time changed, some having died or withdrawn and others being admitted as partners. Petitioner's interest fluctuated from 14.99 per cent in 1925 to 20.08 per cent in 1937, but was never less than 13.425 per cent. As of January 1, 1937, petitioner sold a fractional interest in the partnership to new partners and realized an admitted capital gain on the transaction.
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Petitioner became a member of a partnership in 1908. The partners from time to time changed, some having died or withdrawn and others being admitted as partners. Petitioner's interest fluctuated from 14.99 per cent in 1925 to 20.08 per cent in 1937, but was never less than 13.425 per cent. As of January 1, 1937, petitioner sold a fractional interest in the partnership to new partners and realized an admitted capital gain on the transaction. Petitioner contends he had owned the fractional interest sold for more than 10 years. The Commissioner determined the period of holding was governed by…
1Opinion of the Court
OPINION.
Black, Judge:
Petitioner contends that the sale by the petitioner on January 1, 1937, of a fractional share of his partnership interest in Lehman Brothers constituted a sale of a “capital asset” held for more than 10 years and only 30 per cent of the gain on the sale is to be taken into account under section 117 of the Revenue Act of 1936 1 in computing the petitioner’s net income for the calendar year 1937.
Respondent’s contention is that, where a partner sells his property rights in a partnership, the holding period which determines the amount of capital gain or loss to be taken into…
2Cases cited5 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Blodgett v. SilbermanSupreme Court of the United States · 1928
- Burwell v. CawoodSupreme Court of the United States · 1844
- Ford v. Comm'rUnited States Tax Court · 1946
- Thornley v. CommissionerUnited States Tax Court · 1943
3Cited by33 opinions
- Commissioner of Internal Revenue v. WhitneyCourt of Appeals for the Second Circuit · 1948
- United States v. ShapiroCourt of Appeals for the Eighth Circuit · 1949
- Smith v. CommissionerUnited States Tax Court · 1948
- Evans v. CommissionerUnited States Tax Court · 1970
- McAfee v. CommissionerUnited States Tax Court · 1947
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