Blake v. Commissioner
United States Board of Tax Appeals
A partnership agreement provided that 6 per cent interest should be charged as a business expense and paid to the partners on their capital used by the firm before distributing the rest of the earnings on a percentage basis. Held that the distributive share of a partner in the net income of the partnership included the amount received by him as interest on his capital.
1Opinion of the Court
*653OPINION.
MtjRdocK :
The petitioner contends that he contributed to the capital of the partnership of Blake Brothers & Co., and that all of the income wdiich he received from Blake Brothers & Co. either by way of interest as provided in Article Third of the copartnership agreement or as a portion of the net gains and profits in accordance with Article Sixth of the copartnership agreement, constituted his dis*654tributive share of the net income of the partnership for the taxable year in question, and that he should be entitled to the same fractional part of the total credits and deductions to which…
2Cases cited1 opinion
- Parker v. Commissioner of Corporations & TaxationMassachusetts Supreme Judicial Court · 1926
3Cited by3 opinions
- Commissioner of Internal Revenue v. BanfieldCourt of Appeals for the Ninth Circuit · 1941
- Blake v. CommissionerUnited States Board of Tax Appeals · 1927
- Guaranty Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1936