Blum v. Commissioner
United States Tax Court
1. For a number of years prior to 1940 petitioners, who were brothers, were equal partners in a wholesale men's furnishings business. On October 31, 1940, they agreed, in consideration of the payment of $ 16,500 by one brother to the other and the assumption by the former of the partnership liabilities, that the partnership should be dissolved, and the retiring partner assigned to his brother all his right, title, and interest in the business and in the assets.
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1. For a number of years prior to 1940 petitioners, who were brothers, were equal partners in a wholesale men's furnishings business. On October 31, 1940, they agreed, in consideration of the payment of $ 16,500 by one brother to the other and the assumption by the former of the partnership liabilities, that the partnership should be dissolved, and the retiring partner assigned to his brother all his right, title, and interest in the business and in the assets. The remaining brother thereafter conducted the business as an individual, making no change in the books to reflect the cost of the…
1Opinion of the Court
OPINION.
Aitondeix, Judge:
The parties are in agreement that the transaction between Nathan Blum and his brother, Louis A. Blum, was á sale, but they differ as to the details, the petitioner contending that he bought his brother’s partnership interest, and the respondent contending that petitioner bought his brother’s interest in the partnership assets. Petitioner’s argument is to the effect that gain or loss is realized only upon the sale or disposition of the business as such, not from the disposition of the assets in the course of business.
The result contended for by petitioner, however,…
2Cases cited4 opinions
- Heiner v. MellonSupreme Court of the United States · 1938
- Thornley v. CommissionerUnited States Tax Court · 1943
- Smith v. CommissionerUnited States Tax Court · 1945
- Fawcett v. CommissionerUnited States Tax Court · 1944
3Cited by13 opinions
- Metzger Trust v. CommissionerUnited States Tax Court · 1981
- Frank C. Davis, Jr. And Frank C. Davis, Jr., of the Estate of Grace K. Davis v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1989
- Fasken v. CommissionerUnited States Tax Court · 1979
- Miller v. CommissionerUnited States Tax Court · 1980
- Fedders Corp. v. CommissionerUnited States Tax Court · 1979
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