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partner contributes one or both of the ingredients of
income--capital or services." Commissioner v. Culbertson,
337 U.S. 733, 740 (1949). In deciding whether two or more
persons have formed a partnership:
The question is not whether the services or
capital contributed by a partner are of
sufficient importance to meet some objective
standard * * * but whether, considering all the
facts--the agreement, the conduct of the parties
in execution of its provisions, their statements,
the testimony of disinterested persons, the
relationship of the parties, their respective
abilities and capital contributions, the actual
control of income and the purposes for which it
is used, and any other facts throwing light on
their true intent--the parties in good faith and
acting with a business purpose intended to join
together in the present conduct of the
enterprise. Id.
See Luna v. Commissioner, 42 T.C. 1067, 1077-1078 (1964).
Recognition of a partnership for Federal tax purposes
also requires that the parties conduct some business
activity. See Madison Gas & Elec. Co. v. Commissioner,
633 F.2d 512, 514-518 (7th Cir. 1980), affg. 72 T.C. 521
(1979); Frazell v. Commissioner, 88 T.C. 1405, 1412 (1987).
For example, it is clear that neither joint ownership of
property nor sharing of expenses, by itself, creates a
partnership for Federal tax purposes. Madison Gas &
Elec. Co. v. Commissioner, supra; Estate of Appleby v.
Commissioner, 41 B.T.A. 18, 20 (1940), affd. 123 F.2d 700
(2d Cir. 1941); Gabriel v. Commissioner, T.C. Memo. 1993-
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