Schnitzer v. Commissioner
United States Tax Court
1. Two individuals, engaged for many years in the junk business, signed a partnership agreement in 1928, giving to the wife of each a one-fourth interest. When the husbands began the junk business in a humble way, the wives' doweries in part supplied capital, and the wives also gave assistance by services.
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1. Two individuals, engaged for many years in the junk business, signed a partnership agreement in 1928, giving to the wife of each a one-fourth interest. When the husbands began the junk business in a humble way, the wives' doweries in part supplied capital, and the wives also gave assistance by services. As the business expanded into a large and profitable enterprise, the wives were constantly consulted about policy; the husbands deferred to their judgment in business matters; and the wives participated fully and often decisively in important decisions. For 1941 the four spouses…
1Opinion of the Court
OPINION.
Johnson, Judge:
After the Commissioner had recognized for many years that Bose Schnitzer and Jennie Wolf were members of the partnership conducting business under the style of Alaska Junk Co., he determined that for tax purposes only their husbands, Sam Schnitzer and Harry J. Wolf, should be deemed partners in 1942 and 1943. He defends that determination by the argument that the wives contributed no capital, rendered no services, and exercised no control over the business; that the agreement of 1928, by which the husbands purported to transfer a one-fourth interest to each wife,…
2Cases cited16 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Cromwell v. County of SacSupreme Court of the United States · 1877
- Pepper v. LittonSupreme Court of the United States · 1939
- Commissioner v. TowerSupreme Court of the United States · 1946
- Southern Pacific Railroad v. United StatesSupreme Court of the United States · 1897
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3Cited by127 opinions
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- Smith v. CommissionerUnited States Tax Court · 1951
- Matthiessen v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1952
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