Smith v. Commissioner
United States Tax Court
In consideration of love and affection and the assumption by his wife of equal and joint liability on his obligations petitioner, by an acknowledged written instrument, transferred to his wife a one-half interest in a lumber-manufacturing business theretofore owned by petitioner in sole proprietorship and immediately thereafter they entered into a partnership agreement under which the petitioner put into the business his remaining one-half interest and his wife put into the…
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In consideration of love and affection and the assumption by his wife of equal and joint liability on his obligations petitioner, by an acknowledged written instrument, transferred to his wife a one-half interest in a lumber-manufacturing business theretofore owned by petitioner in sole proprietorship and immediately thereafter they entered into a partnership agreement under which the petitioner put into the business his remaining one-half interest and his wife put into the business the one-half interest so transferred to her, the profits and losses to be thereafter shared equally by…
1Opinion of the Court
OPINION.
Tyson, Judge:
The primary and only issue, if such issue is decided favorably to petitioner, is whether the firm engaged in the lumber-manufacturing business under the name “M. W. Smith, Jr.” and/or “M. W. Smith Lumber Company” was in substance and reality a bona fide partnership, the income of which is divisible for tax purposes between petitioner and his wife, or whether all of said income is properly taxable to petitioner.
There is no dispute that under the laws of Alabama husband and wife may be partners in any lawful business. J. D. Johnston, Jr., 3 T. C. 799.
In a long line of cases…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Tower v. CommissionerUnited States Tax Court · 1944
- Center v. P. & M. BankSupreme Court of Alabama · 1853
- Marshall v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1932
- Lorenz v. CommissionerUnited States Tax Court · 1944
9 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Tower v. COMMISSIONER OF INTERNAL REVENUECourt of Appeals for the Sixth Circuit · 1945
- Bouchard v. CommissionerUnited States Tax Court · 1960
- Bouchard v. CommissionerUnited States Tax Court · 1960
- Smith v. CommissionerUnited States Tax Court · 1944
1 more not listed; retrieve them via the Exa API.