Fainblatt v. Commissioner

OPINION.

Oppek, Judge:

When this same partnership was before the Tax Court for prior years, it was held not to be valid for Federal income tax purposes on the authority of the Tower1 and Lusthaus 2 cases, which were then the last word from the Supreme Court on the subject. Horowitz was held to be a valid partner as having contributed vital additional services. But as the law then stood it is impossible to quarrel with the previous conclusion that the wives of the present petitioners contributed no vital or managerial services and no capital originating with them. The result that the partnership…