Spicker v. Commissioner
United States Tax Court
1. Petitioner, upon withdrawing from an accounting partnership, received $ 25,000 for his interest in the cash capital account (then overdrawn), the profits, the uncollected accounts receivable, and the unbilled work of the partnership. Held, petitioner received in substance an amount representing earnings of the partnership which is taxable as ordinary income.
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1. Petitioner, upon withdrawing from an accounting partnership, received $ 25,000 for his interest in the cash capital account (then overdrawn), the profits, the uncollected accounts receivable, and the unbilled work of the partnership. Held, petitioner received in substance an amount representing earnings of the partnership which is taxable as ordinary income. Helvering v. Smith, 90 F. 2d 590 (C. A. 2), followed. 2. Petitioner had overdrawn his capital account by $ 1,101.33, which he was permitted to retain upon severing his connection with the firm. Held, such excess, in the circumstances…
1Opinion of the Court
OPINION.
Raum, Judge:
The petitioner contends that the transaction consummated on March 11, 1948, was in form and substance a sale of his partnership interest in the firm of Darmody, Todd & Co., that he realized a gain of $26,101.83 as a result of this sale, and that under the provisions of section 117 of the Internal Revenue Code of 1939, he is entitled to report this gain as a long-term capital gain. He argues that the partnership continued to do business as usual until March 11, 1948, and that he had an interest in each and every asset of the partnership and in its past and future profits;…
2Cases cited13 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- Williams v. McGowanCourt of Appeals for the Second Circuit · 1945
- Helvering v. SmithCourt of Appeals for the Second Circuit · 1937
- Swiren v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1950
- Karsch v. CommissionerUnited States Tax Court · 1947
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3Cited by4 opinions
- United States v. Barbara B. DonohoCourt of Appeals for the Eighth Circuit · 1960
- Sherlock v. CommissionerCourt of Appeals for the Fifth Circuit · 1961
- Chris J. Sherlock v. Commissioner Of Internal RevenueCourt of Appeals for the Fifth Circuit · 1961
- Spicker v. CommissionerUnited States Tax Court · 1956