Falconer v. Commissioner
United States Tax Court
Petitioner formed a partnership with another person for the purpose of operating a private employment agency. He contributed no capital. The partnership agreement provided that petitioner was to be paid a salary of $ 150 per week as compensation for services rendered. The partnership was dissolved in May 1958, and succeeded by a corporation of the same name.
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Petitioner formed a partnership with another person for the purpose of operating a private employment agency. He contributed no capital. The partnership agreement provided that petitioner was to be paid a salary of $ 150 per week as compensation for services rendered. The partnership was dissolved in May 1958, and succeeded by a corporation of the same name. The partnership suffered a loss, one-half of which was claimed by petitioner on his income tax return for the taxable year 1958. Held: 1. Amounts received by petitioner in 1957 and 1958 from the partnership were guaranteed payments under…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined deficiencies in the petitioners’ income taxes as follows:
Tear Deficiency
1957 _ $397.07
1958 - 1,114. 85
The issues for decision are:(1) Whether amounts received by petitioner F. A. Falconer during the calendar years 1957 and 1958 from a partnership were guaranteed payments under the provisions of section 707 (c), I.R.C. 1954,1 and taxable income to petitioners under section 61(a) (1).(2) Whether amounts received by petitioner F. A. Falconer during the taxable year 1958 from a corporation are income to him in that year.(3) Whether the petitioner F. A.…
2Cases cited2 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Commissioner v. SmithSupreme Court of the United States · 1945
3Cited by19 opinions
- Cagle v. CommissionerUnited States Tax Court · 1974
- Cagle v. CommissionerCourt of Appeals for the Fifth Circuit · 1976
- Miller v. CommissionerUnited States Tax Court · 1969
- Pratt v. CommissionerUnited States Tax Court · 1975
- United States v. Thomas M. FaheyCourt of Appeals for the Second Circuit · 1974
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