Harris v. Commissioner
United States Tax Court
1. Petitioners are copartners, carrying on a manufacturing business under the name of Union Manufacturing Co. They have two children. Each owns an undivided one-half interest in the business and is entitled to receive one-half of the profits each year. As of January 1, 1943, each petitioner purportedly gave an undivided, one-sixteenth interest in the business to each child.
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1. Petitioners are copartners, carrying on a manufacturing business under the name of Union Manufacturing Co. They have two children. Each owns an undivided one-half interest in the business and is entitled to receive one-half of the profits each year. As of January 1, 1943, each petitioner purportedly gave an undivided, one-sixteenth interest in the business to each child. Neither child contributed any capital originating with himself, and during 1943 neither child performed any services in the business. Under the facts, held, that petitioners did not create a new and bona fide partnership…
1Opinion of the Court
OPINION.
Harron, Judge:
Anna and Morris Harris are copartners in the partnership which conducts business as Union Manufacturing Co. The partnership, consisting of the petitioners, is not questioned by the Commissioner. But respondent has determined that their son and daughter were not members of a copartnership with petitioners, and he has taxed to petitioners income which was reported as the children’s shares of the earnings of Union Manufacturing Co. in 1943 and 1944. The question is whether one-sixteenth of the earnings of the above business is taxable to Albert Harris, and the same…
2Cases cited5 opinions
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lowry v. CommissionerUnited States Tax Court · 1944
- De Korse v. CommissionerUnited States Tax Court · 1945
- Mauldin v. CommissionerUnited States Tax Court · 1945
- Monroe v. CommissionerUnited States Tax Court · 1946
3Cited by14 opinions
- Reise v. CommissionerUnited States Tax Court · 1961
- Miller v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1950
- Aaron v. CommissionerUnited States Tax Court · 1954
- Whitman v. CommissionerUnited States Tax Court · 1949
- Toor v. WestoverDistrict Court, S.D. California · 1950
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