Life Care Communities of America, LTD., a Florida Limited Partnership, Robert W. and Johanna McMichael, Partners Other Than the Tax Matters Partner - Page 9

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               Petitioners assert that material issues of fact regarding              
          the termination of petitioner's status as a Life Care partner               
          remain in dispute and that the rule in Commissioner v. Danielson,           
          supra, is not applicable under the circumstances presented.                 
               For Federal tax purposes, the terms "partnership" and                  
          "partner" are defined in section 7701(a)(2) as follows:                     
                    (2) Partnership and partner.--The term                            
               "partnership" includes 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, and which is not, within the                 
               meaning of this title, a trust or estate or a                          
               corporation; and the term "partner" includes a member                  
               in such a syndicate, group, pool, joint venture, or                    
               organization.                                                          
          See sec. 761(a).  The existence or nonexistence of a partnership            
          under State law is not determinative for Federal tax purposes.              
          Commissioner v. Tower, 327 U.S. 280, 287 (1946); Frazell v.                 
          Commissioner, 88 T.C. 1405, 1412 (1987); Hensel Phelps                      
          Construction Co. v. Commissioner, 74 T.C. 939, 947-948 (1980),              
          affd. 703 F.2d 485 (10th Cir. 1983).                                        
               In Commissioner v. Culbertson, 337 U.S. 733, 742 (1949), the           
          Supreme Court held that, in determining whether a partnership has           
          been formed for tax purposes, the proper inquiry is:                        

          (...continued)                                                              
          Coleman v. Commissioner, 87 T.C. 178, 202 n.17 (1986), affd.                
          without published opinion 833 F.2d 303 (3d Cir. 1987), we would             
          be obliged to follow the holding of Bradley v. United States, 730           
          F.2d 718 (11th Cir. 1984), if that case were directly on point.             
          Golsen v. Commissioner, 54 T.C. 742, 756-757 (1970), affd. 445              
          F.2d 985 (10th Cir. 1971).                                                  




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