Merz v. Commissioner
United States Tax Court
Family Partnership -- Husband and Wife -- Services -- Capital. -- A wife who contributed some capital and fully participated in a business carried on under a written partnership agreement is recognized as a partner for income tax purposes and her share of the partnership profits is not taxable to her husband.
1Opinion of the Court
OPINION.
Muedock, Judge:
The Commissioner has refused to recognize the petitioner’s wife as a real partner in the business of F. O. Merz & Co. The evidence is overwhelming in the petitioner’s favor. The separate capita] of the wife which she contributed to this business was not large, but neither was that contributed by the petitioner. The wife contributed services to the business from the time it was started in 1932 up through the taxable year and later. She devoted all of her working time to it. The business started in a small way and for many years she and her husband were the only persons…
2Cited by4 opinions
- Stern v. CommissionerUnited States Tax Court · 1950
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Merz v. CommissionerUnited States Tax Court · 1949
- Stern v. CommissionerUnited States Tax Court · 1950