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Whether a valid partnership exists for Federal tax
purposes is governed by Federal law. See Commissioner v.
Culbertson, 337 U.S. 733 (1949); Lusthaus v. Commissioner,
327 U.S. 293 (1946); Commissioner v. Tower, 327 U.S. 280
(1946); Evans v. Commissioner, 447 F.2d 547, 550 (7th Cir.
1971); Frazell v. Commissioner, 88 T.C. 1405, 1412 (1987);
Wheeler v. Commissioner, T.C. Memo. 1978-208. Section 761
of the Code defines the term "partnership" as follows:
(a) PARTNERSHIP.--For purposes of this sub-
title, 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 [subtitle], a corpora-
tion or a trust or estate. * * *
See also sec. 7701(a)(2). The term "partnership" as
defined by the Code is broader in scope than the common
law meaning of partnership, and may include groups not
traditionally considered partnerships. Sec. 1.761-1(a),
Income Tax Regs.; sec. 301.7701-3(a), Proced. & Admin.
Regs.
A partnership is created "when persons join together
their money, goods, labor, or skill for the purpose of
carrying on a trade, profession, or business and when there
is a community of interest in the profits and losses."
Commissioner v. Tower, supra at 286. Generally, "each
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