Legal Opinion

Dixon v. Commissioner

United States Tax Court

Decided May 14, 1951No. Docket Nos. 22165, 22166, 22167, 22168PublishedCited by 1 opinion

1. Section 107 (a) -- Compensation for Personal Services -- Building and Selling Houses. -- Section 107 (a) does not apply to the distributive shares of partnership income of partners who contributed only services to the partnership engaged in subdividing land and building thereon and selling low cost houses. 2. Section 44 (d) -- Transmission or Disposition. -- Section 44 (d) applies where a partnership, reporting sales of real estate on the installment method, transferred…

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1. Section 107 (a) -- Compensation for Personal Services -- Building and Selling Houses. -- Section 107 (a) does not apply to the distributive shares of partnership income of partners who contributed only services to the partnership engaged in subdividing land and building thereon and selling low cost houses. 2. Section 44 (d) -- Transmission or Disposition. -- Section 44 (d) applies where a partnership, reporting sales of real estate on the installment method, transferred its installment obligations to a trust created by the partners who then terminated the partnership.

1Opinion of the Court

OPINION.

Murdock, Judge:

The petitioners first contention is that section 107 (a) applies. They cite no cases in point. Section 107 (a) provides:

If at least 80 per centum of the total compensation for personal services covering a period of thirty-six calendar months or more (from the beginning to the completion of such services) is received or accrued in one taxable year by an individual or a partnership, the tax attributable to any part thereof which is included in the gross income of any individual shall not be greater than the aggregate of the taxes attributable to such part had it been…

2Cases cited3 opinions

  1. Rogers v. CommissionerUnited States Tax Court · 1943
  2. Waddell v. COMMISSIONER OF INTERNAL REVENUECourt of Appeals for the Fifth Circuit · 1939
  3. Goldberg v. CommissionerUnited States Tax Court · 1950

3Cited by1 opinion

  1. Dixon v. CommissionerUnited States Tax Court · 1951

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