Hallahan v. Commissioner
United States Board of Tax Appeals
1. PARTNERSHIP - PROFITS DISTRIBUTIVE TO NONPARTNERS. - Two members of a partnership of four died. Thereupon a new partnership was organized by the two remaining, together with three new parties.
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1. PARTNERSHIP - PROFITS DISTRIBUTIVE TO NONPARTNERS. - Two members of a partnership of four died. Thereupon a new partnership was organized by the two remaining, together with three new parties. By the new articles of partnership it was agreed that the estates of the deceased members of the former partnership would be paid a fixed percentage of the profits of the new partnership for three years, but such estates would assume no liability under the new contract of partnership. This arrangement was agreed to by the executors of the two estates, and distributions were made to the two estates as…
1Opinion of the Court
*591OPINION.
Smith :
In filing their income-tax returns for the years 1917, 1918, 1919, and 1920, each of the petitioners excluded the payments made to the estates of Arthur B. Gilmore and William T. Ulman in computing the amount of partnership income available for distribution to themselves, whereas the respondent, for each of those years, added to the amount of net income reported by the partnership the amounts paid to the estates of Gilmore and Ulman and included in the gross income of each of the partners a proportionate part of such amounts.
The petitioners insist that the payments made to the…
2Cases cited6 opinions
- Gritten v. DickersonIllinois Supreme Court · 1903
- Wilkinson v. StittMassachusetts Supreme Judicial Court · 1900
- Rice v. RiceMichigan Supreme Court · 1895
- Craig, Guardian v. HarlessCourt of Appeals of Texas · 1903
- Odell v. MossCalifornia Supreme Court · 1902
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Allen v. CommissionerUnited States Tax Court · 1975
- Hallahan v. CommissionerUnited States Board of Tax Appeals · 1928