Estate of Koen v. Commissioner

OPINION.

Leech, Judge:

The contested deficiencies result from the respondent’s determination that Koen and the partnership of Hamill & Smith were partners or joint adventurers1 in the exploitation of the “Air-styr” device, and that the disallowed portion of the community loss ■ claimed by petitioners in the taxable year, 1943, was sustained in the prior years, 1941 and 1942.

Petitioners argue that the venture was abandoned prior to the time when the parties were to become equally interested as partners or joint adventurers in the business, and that Koen sustained no loss until he reimbursed…