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(truck), and a 1985 Ford Mustang. Petitioner further testified
that the 1965 Mustang and the truck were used partially for
business use and partially for personal use, while the 1985
Mustang was used exclusively for personal use. The truck was
purchased by petitioner in May of 1985. Petitioner purchased the
truck for $3,330, paying with two separate checks drawn on the
Orad account. The 1985 Mustang was purchased by petitioner on
June 12, 1985, with a down payment in the amount of $7,000, paid
with a check drawn on the Orad account. During 1985, petitioner
sold her 1985 Mustang.
OPINION
Issue 1. Unreported Schedule C Income
Respondent determined that all of the income derived by Orad
should be included in petitioner's return. Petitioner asserts
that Orad was a partnership; thus, only one-half of the income
from Orad is taxable to her.
As a general rule, the Commissioner's determinations are
afforded a presumption of correctness, and the taxpayer bears the
burden of proving that those determinations are erroneous. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
A partnership is broadly defined as "a syndicate, group,
pool, joint venture, or other unincorporated organization,
through or by means of which any business, financial operation,
or venture is carried on". Sec. 7701(a)(2); sec. 1.761-1(a),
Income Tax Regs. Generally, a partnership exists when persons
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