Niles Fire Brick Co. v. Commissioner
United States Board of Tax Appeals
1. PARTNERSHIPS. - When the heirs of John R. Thomas, under the terms of his will, acquired the property known as The Niles Fire Brick Co. and continued the operation of the same as a going business, they thereby became, in the view of the law, a partnership. 2. Although these same heirs later joined in some of the acts required for the formation of a corporation, the property and the business of the partnership were not conveyed to the corporation, and the evidence does not…
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1. PARTNERSHIPS. - When the heirs of John R. Thomas, under the terms of his will, acquired the property known as The Niles Fire Brick Co. and continued the operation of the same as a going business, they thereby became, in the view of the law, a partnership. 2. Although these same heirs later joined in some of the acts required for the formation of a corporation, the property and the business of the partnership were not conveyed to the corporation, and the evidence does not support the Commissioner's claim that the income of the business should be taxed as the income of a corporation or…
1Opinion of the Court
*12OPINION.
Teussell:
In the case of McFarlane v. McFarlane (1894), 31 N. Y. S. 272, the court said:
Tile mere fact of the bequest to them, by will, of the net estate in question, and of the business, did not constitute them partners, but merely made them joint owners; but their election to continue the business, each contributing thereto his share of the property so bequeathed to him-, rendered the relation between them that of copartners, and the property copartnership property.
This rule of law has been long established and is supported by many decided cases. It must therefore be taken as…
2Cases cited1 opinion
- The JamesburgDistrict Court, E.D. Pennsylvania · 1915
3Cited by3 opinions
- Dillier v. CommissionerUnited States Tax Court · 1964
- Dillier v. CommissionerUnited States Tax Court · 1964
- Niles Fire Brick Co. v. CommissionerUnited States Board of Tax Appeals · 1927