Singletary v. Commissioner
United States Tax Court
Petitioner, from 1936 to 1939, operated a chain of filling stations under a trade name. In 1939 he executed an instrument purporting to transfer to his wife, in consideration of love and affection, an undivided one-half interest in the personal property, personal assets, and good will of the business and agreeing that thenceforth they should engage in the business as partners.
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Petitioner, from 1936 to 1939, operated a chain of filling stations under a trade name. In 1939 he executed an instrument purporting to transfer to his wife, in consideration of love and affection, an undivided one-half interest in the personal property, personal assets, and good will of the business and agreeing that thenceforth they should engage in the business as partners. The wife brought in no new capital and contributed no services, and the business was thereafter carried on as it had been carried on previously. Bookkeeping entries were made crediting one-half of the profits to…
1Opinion of the Court
OPINION.
Mellott, Judge:
The facts are not seriously in dispute. Do they show that petitioner and his wife were “carrying on business in partnership” (sec. 181,1. R. C.) during 1940 and that he, his wife, and his parents were doing so in 1941 ? That is the sole question.
Many cases have been decided recently involving claimed family partnerships. (See, e. g., the majority, concurring, and dissenting opinions in Camiel Thorrez, 5 T. C. 60; Jacob DeKorse, 5 T. C. 94; Hodgson v. Willingham, - Fed. Supp. - (May 17, 1945). Cf. Lusthaus v. Commissioner, 149 Fed. (2d) 232; M. M. Argo, 3 T. C. 1120;…
2Cases cited11 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
6 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Appel v. SmithDistrict Court, N.D. Indiana · 1945
- Singletary v. CommissionerUnited States Tax Court · 1945