Forsythe v. Commissioner
United States Tax Court
Petitioner and one Ferguson, as partners, developed a large dairy business. Petitioner, unable to read and write, had charge of the farms and livestock, and Ferguson, of the office, finances, and accounting. Ferguson died in October 1942, and petitioner's wife bought his half interest in the dairy from his heirs, making payment with loans from petitioner and with a joint note of herself and petitioner, secured by a mortgage on all properties used in the business.
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Petitioner and one Ferguson, as partners, developed a large dairy business. Petitioner, unable to read and write, had charge of the farms and livestock, and Ferguson, of the office, finances, and accounting. Ferguson died in October 1942, and petitioner's wife bought his half interest in the dairy from his heirs, making payment with loans from petitioner and with a joint note of herself and petitioner, secured by a mortgage on all properties used in the business. Petitioner and she continued the business under a partnership agreement. The wife performed the duties formerly discharged by…
1Opinion of the Court
OPINION.
Johnson, Judge:
Respondent defends the determination that petitioner is taxable on the entire income of the business operated under the name of Columbia Dairies, invoking Commissioner v. Tower, 327 U. S. 280, which, with the related opinion in Lusthaus v. Commissioner, 327 U. S. 293, has been expounded in numerous opinions involving the recognition of family partnerships for income tax. purposes. See Simmons v. Commissioner (C. C. A., 5th Cir.), 164 Fed. (2d) 220. Under the doctrine so established the Commissioner is warranted in ignoring a partnership between husband and wife,…
2Cases cited6 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Parker v. CommissionerUnited States Tax Court · 1946
- Goodman v. CommissionerUnited States Tax Court · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Forsythe v. CommissionerUnited States Tax Court · 1948