Silling v. Commissioner
United States Tax Court
Petitioner purchased his partner's interest in their partnership and thereafter continued the operation of the business as a sole proprietorship. The purchase price was determined upon the basis of the estimated profits to be derived from the performance of certain contracts on which the firm was then engaged.
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Petitioner purchased his partner's interest in their partnership and thereafter continued the operation of the business as a sole proprietorship. The purchase price was determined upon the basis of the estimated profits to be derived from the performance of certain contracts on which the firm was then engaged. Held, although these contracts had a zero basis in the hands of the partnership, petitioner is entitled to allocate the purchase price of his partner's interest to such contracts and to amortize the basis thereby established in computing the profits realized on their performance by him…
1Opinion of the Court
OPINION.
Bice, Judge:
On March 10,1951, petitioner and his partner, Tucker, agreed that they should terminate their association in the partnership “Tucker & Silling” and that Tucker should be paid the amount of $40,000, in three installment payments, for his partnership interest. This amount was determined on the basis of Tucker’s estimated share of the profits to be derived from certain architectural contracts then being performed by the firm. On the returns filed by petitioner and the business for 1951, Tucker was treated as a continuing partner in the firm throughout that taxable year, and…
2Cases cited12 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Autenreith v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
- Hill v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1930
- Thompson v. CommissionerUnited States Tax Court · 1954
- Risko v. CommissionerUnited States Tax Court · 1956
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3Cited by8 opinions
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- Sumers v. CommissionerUnited States Tax Court · 1961
- Nieman v. CommissionerUnited States Tax Court · 1960
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