Lindstrom v. Commissioner
United States Tax Court
On May 1, 1936, Ralph G. Lindstrom formed a law partnership with Arthur W. Eckman. During 1940 the partnership received a $ 25,000 fee for legal services, no part of which was rendered by petitioner prior to the formation of the partnership.
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On May 1, 1936, Ralph G. Lindstrom formed a law partnership with Arthur W. Eckman. During 1940 the partnership received a $ 25,000 fee for legal services, no part of which was rendered by petitioner prior to the formation of the partnership. The partners divided the fee equally and Lindstrom and his wife each reported one-half of his portion of the fee on their 1940 income tax returns, filed on a community property basis, and claimed the benefits of section 107 of the Internal Revenue Code. Held, petitioners are not entitled to the benefits of section 107, as neither the services of Lindstrom…
1Opinion of the Court
OPINION.
Aknold, Judge-.
Section 107 was added to the Internal Revenue Code by section 220 of the Revenue Act of 1939, set forth in the margin.1 The amendment of section 107 by section 139 of the Revenue Act of 1942 does not apply as it relates only to taxable years beginning after December 31,1940.
Respondent contends that petitioners are not entitled to the benefits of section 107 because (a) the services have not yet terminated; (b) the $25,000 fee is less than 95 percent of the total of the amounts received ($25,000 plus $3,772.45); and (c) the services of Ralph G. Lindstrom were commenced…
2Cases cited3 opinions
- Keeble v. CommissionerUnited States Tax Court · 1943
- Clark v. CommissionerUnited States Tax Court · 1943
- Slough v. CommissionerUnited States Tax Court · 1944
3Cited by5 opinions
- Hofferbert v. Marshall Et UxCourt of Appeals for the Fourth Circuit · 1952
- Marshall v. CommissionerUnited States Tax Court · 1950
- John E. McClure and Helen M. McClure v. The United States of AmericaCourt of Appeals for the Fourth Circuit · 1955
- Lindstrom v. CommissionerUnited States Tax Court · 1944
- Marshall v. CommissionerUnited States Tax Court · 1950