Gannon v. Commissioner
United States Tax Court
1. Partnership agreement provided that, upon the death of a partner, surviving partners had the right to liquidate the partnership or, in the alternative, the option to purchase decedent's interest therein at an amount fixed annually by supplementary agreement of the partners.
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1. Partnership agreement provided that, upon the death of a partner, surviving partners had the right to liquidate the partnership or, in the alternative, the option to purchase decedent's interest therein at an amount fixed annually by supplementary agreement of the partners. The price was fixed in the supplementary agreement as of January 1, 1947. Decedent died on October 4, 1947. Decedent's share of substantial profits of the partnership for period from January 1, 1947, to October 4, 1947, was not taken into consideration in determining price fixed by the supplementary agreement, and no…
1Opinion of the Court
OPINION.
Fishes, Judge:
I. Valuation of Decedent’s Interest in Partnership.
A. Agreed Valuation in Supplemental Partnership Agreement Not Binding on Respondent.
Petitioner included the sum of $41,339.35 in decedent’s Federal estate tax return as the value of decedent’s interest in the partnership, J. W. Gannon and Company. Section 9 (a) of the partnership agreement provided that upon the death of one of the partners, the surviving partners had the right either to continue the operation of the business or to liquidate it. The agreement further provided that if the survivors elected to continue the…
2Cases cited2 opinions
- Estate of Maddock v. CommissionerUnited States Tax Court · 1951
- Trammell v. CommissionerUnited States Tax Court · 1952
3Cited by19 opinions
- Carty v. CommissionerUnited States Tax Court · 1962
- Goodman v. GrangerCourt of Appeals for the Third Circuit · 1957
- Proctor v. CommissionerUnited States Tax Court · 1981
- Critchfield v. CommissionerUnited States Tax Court · 1959
- Knipp v. CommissionerUnited States Tax Court · 1955
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