Greta Ann Clifton - Page 7

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          "join together their money, goods, labor, or skill for the                  
          purpose of carrying on a trade, profession, or business and when            
          there is community of interest in the profits and losses."                  
          Commissioner v. Tower, 327 U.S. 280, 286 (1946).  The existence             
          of the requisite purpose is a question of fact that turns on the            
          parties' intent.  Commissioner v. Culbertson, 337 U.S. 733, 742             
          (1949).  Moreover, while the existence or nonexistence of a                 
          partnership under common law or State law may be relevant,                  
          Federal law controls classification for Federal tax purposes.               
          Estate of Kahn v. Commissioner, 499 F.2d 1186 (2d Cir. 1974),               
          affg. Grober v. Commissioner, T.C. Memo. 1972-240; Luna v.                  
          Commissioner, 42 T.C. 1067, 1077 (1964); sec. 1.761-1(a), Income            
          Tax Regs.                                                                   
               There are several factors to be weighed in determining                 
          whether a partnership exists, none of which alone is                        
          determinative.  Alhouse v. Commissioner, T.C. Memo. 1991-652,               
          affd. sub nom. Bergford v. Commissioner, 12 F.3d 166 (9th Cir.              
          1993).  The test is whether:                                                
               considering all the facts--the agreement, the conduct of the           
               parties in execution of its provisions, their statements,              
               the testimony of disinterested persons, the relationship of            
               the parties, their respective abilities and capital                    
          contributions, the actual control of income and the purposes                
               for which it is used, and any other facts throwing light on            
               their true intent--the parties in good faith and acting with           
               a business purpose intended to join together in the present            
               conduct of the enterprise.  [Commissioner v. Culbertson,               
               supra at 742; fn. ref. omitted]                                        
               Petitioner argues that she and Daro operated Orad as a                 
          partnership.  Petitioner notes that she and Daro each signed the            

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