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trade or business and that in such situations the partners'
investments should be regarded as the mere coownership of
property. We disagree.
Petitioners' specific arguments herein were rejected in
Madison Gas & Elec. Co. v. Commissioner, 72 T.C. 521, 561-563
(1979), affd. 633 F.2d 512 (7th Cir. 1980). In Madison Gas &
Elec. Co., it was concluded that under section 761(a) a
partnership may exist even without a profit objective. Section
761(a) merely requires an “unincorporated organization, through
or by means of which any business, financial operation, or
venture is carried on." Madison Gas & Elec. Co. v. Commissioner,
633 F.2d at 514; see also Pasternak v. Commissioner, 990 F.2d at
900 (tax shelter cotenancies treated as partnerships under
sections 761(a) and 7701(a)(2)); Brannen v. Commissioner, supra
at 512 n.16 (tax shelter partnership not engaged in business for
profit under section 183 treated as partnership under section
761(a)).
In National Commodity & Barter Association v. United States,
843 F. Supp. 655, 659, 661 (D. Colo. 1993), affd. without
published opinion 42 F.3d 1406 (10th Cir. 1994), an entity that
was organized largely to resist taxes was treated as a
partnership under section 761.
Petitioners cite certain court opinions out of context. In
Commissioner v. Culbertson, 337 U.S. 733, 740 (1949), the Supreme
Court stated that a partnership constitutes an organization for
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