John C. Vanderschraaf and Cornelia Vanderschraaf, et al. - Page 10

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          393 F.2d 573 (9th Cir. 1968), affg. T.C. Memo. 1966-283); sec.              
          1.702-1(b), Income Tax Regs.                                                
               Section 761(a) defines a partnership for Federal income tax            
          purposes essentially as a group, joint venture, or other                    
          unincorporated organization through which any business, financial           
          operation, or venture is carried on.  See also sec. 7701(a)(2)              
          and sec. 1.761-1(a), Income Tax Regs., under which the term                 
          "partnership" is defined more broadly than the common law meaning           
          of partnership.                                                             
               Petitioners argue that our holding in Krause v.                        
          Commissioner, supra, disallowing under section 183 claimed                  
          partnership losses for lack of profit objective (and any holding            
          herein to the same effect with regard to Boulder, Tech-1979, and            
          Winfield) effectively constitutes a holding that the purported              
          partnerships did not constitute legal partnerships.  Petitioners            
          argue therefrom that in the instant cases Boulder, Tech-1979, and           
          Winfield must be regarded by the Court as something other than              
          legal partnership entities and that a partnership entity level              
          analysis of profit objective should not be applied.  Petitioners            
          argue further that the Court has no option in these cases but to            
          apply section 183 at the individual partner level with regard to            
          each and every partner in Boulder, Tech-1979, and Winfield.                 
               Citing section 761(a) and section 301.7701-3(a), Proced. &             
          Admin. Regs., petitioners argue further that partnerships lacking           
          in profit objective are to be regarded as not engaged in any                




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