10
The burden of proof is not altered by submission of the case
fully stipulated under Rule 122. Rule 122(b).
Determining when a partnership is formed is a question of
fact. Sparks v. Commissioner, 87 T.C. 1279, 1282 (1986). For
Federal income tax purposes, a partnership comes into existence
"`when the parties to a venture join together capital or services
with the intent of conducting presently an enterprise or
business.'" Antonides v. Commissioner, 91 T.C. 686, 698 (1988),
(quoting Sparks v. Commissioner, supra at 1282), affd. 893 F.2d
656 (4th Cir. 1990). A partnership is deemed to be formed as of
the date that the first parties to the venture acquired their
respective capital interests in such partnership. Sparks v.
Commissioner, supra at 1283. To qualify as a partner, each party
must contribute capital or services to the partnership. Id.
In determining a partner's investment tax basis with respect
to partnership property, the regulations provide: "each partner
shall take into account separately, * * *, his share of the basis
of partnership new section 38 property and his share of the cost
of partnership used section 38 property placed in service by the
partnership during such partnership taxable year." Sec. 1.46-
3(f)(1), Income Tax Regs. As a general rule "Each partner's
share of the basis (or cost) of any section 38 property shall be
determined in accordance with the ratio in which the partners
divide the general profits of the partnership". Sec. 1.46-
3(f)(2)(i), Income Tax Regs.
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