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total loss; and (4) how much of that loss, if any, can Yung
claim.
A. Did the partnership exist?
Section 761(a) defines a partnership to include
“unincorporated organization through or by means of which any
business, financial operation, or venture is carried on, and
which is not, within the meaning of this title, a corporation or
a trust or estate.”
The Commissioner concedes that the Chong brothers had a
partnership that began in 1993 when they started importing
chicken parts into China from the United States. We find that
the brothers continued to seek out new ventures for their China
enterprise even after the chicken parts business ended--and
because a partnership continues until “no part of any business,
financial operation, or venture of the partnership continues to
be carried on by any of its partners,” sec. 708(a) and (b)(1)(A),
Lok and Yung continued to be partners at least until 1999 when
Lok escaped the destruction of Gourmet Down Under. Exactly how
long the partnership continued after Gourmet Down Under cratered
doesn’t matter. The only relevant issue is whether the
partnership was valid and continuing at the end of the 1998 tax
year. We find that it was.
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