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Boulder, Tech-1979, and Winfield did not constitute mere
passive coowners of property. The partnerships entered into
transactions, formed joint ventures, operated gas wells, and
engaged in various other activities. They carried on a financial
operation or venture. They are to be treated as partnerships under
section 76l(a) even though underlying activity of the partnerships
lacked a profit objective under section 183.
Boulder, Tech-1979, and Winfield each had the formal indicia
of partnership status and conducted themselves generally as
partnerships. They are to be treated as partnerships. The issue
under section 183 as to the profit objective of the partnership
activity is to be analyzed at the partnership level. Our
conclusion in Krause v. Commissioner, supra, and herein that
activity and transactions of the partnerships were not entered into
with a profit objective does not affect the status of Boulder,
Tech-1979, and Winfield as partnerships for Federal income tax
purposes.
Our findings herein as to the lack of profit objective of the
underlying activity of Boulder, Tech-1979, and Winfield are based
in part on petitioners' failure to meet their burden of proof as to
the existence of a profit objective with respect to the underlying
activity of Boulder, Tech-1979, and Winfield, on the fact that the
entire record and evidence of Krause was stipulated to as evidence
in the instant cases, and on the doctrine of stare decisis.
Stare decisis may apply even though -- because the parties in
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