Appeal of the Executors of the Estate of Tilton

*916OPINION.

Lansdon:

The principal question for our determination here, is whether the so-called salaries were in fact salaries, constructively received by the partners monthly and therefore income for the taxable year so received under the provisions of section 213 of the Revenue Act of 1918, or were merely payments from the distributive net income of the partnership. If such allowances were distributions of partnership profits, they must be taxed to the recipients as provided in sections 218 and 205 (c) of the Revenue Act of 1918.

The respondent determined that the allowances here involved were…