Rosenberg v. Commissioner
United States Tax Court
1. A father and son conducted a business in partnership, commencing in 1936. In 1939 three younger sons, all of whom had been employed in the business for many years, demanded an interest in the business. An oral agreement was concluded whereby the three younger sons were each given a 10 per cent interest in the business and, in addition, their mother was also given a 10 per cent interest.
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1. A father and son conducted a business in partnership, commencing in 1936. In 1939 three younger sons, all of whom had been employed in the business for many years, demanded an interest in the business. An oral agreement was concluded whereby the three younger sons were each given a 10 per cent interest in the business and, in addition, their mother was also given a 10 per cent interest. Held, the three sons were members of the partnership in 1940 and 1941, where they contributed substantial services to the business and the evidence showed a real intention to carry on the business in…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The principal question is whether or not, during 1940 and 1941, Edward, Michael, and Wallace Roberts and Esther Rosenberg were partners with Joseph D. Rosenberg and Robert T. Rosenberg in the conduct and operation of the Ideal Fur Co.
The petitioners contend that, under the oral agreement entered into in 1989, each of them became partners in the business, sharing in the profits and losses to the extent specified therein, and that they are taxable individually on the profits credited to their respective accounts on the partnership books. The respondent contends that…
2Cases cited5 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. TowerSupreme Court of the United States · 1946
- Greenberg v. CommissionerUnited States Tax Court · 1945
- Michigan Trust Co. v. City of Grand RapidsMichigan Supreme Court · 1933
- Hankey v. FrenchMichigan Supreme Court · 1937
3Cited by4 opinions
- Estate of Thomas A. Walsh v. CommissionerUnited States Tax Court · 1947
- Globman v. CommissionerUnited States Tax Court · 1947
- Robert H. Cole v. CommissionerUnited States Tax Court · 1948
- Rosenberg v. CommissionerUnited States Tax Court · 1946