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Considering all of the facts and circumstances, we
find that each of the Winkler family members did in fact
"own" a capital interest in the partnership prior to the
time Mrs. Winkler purchased the winning ticket. Each
member of the family contributed capital in the form of
dollar bills to purchase Lotto tickets on more than one
occasion. Each member of the family, except for
Mr. Winkler, also contributed services on more than one
occasion by going into the store to purchase the tickets.
The family agreed among themselves that these contributions
of capital and services were of such value to the
partnership that the contributing family members should
share in any winnings. They also agreed to joint
proprietorship and control over the tickets, and they
agreed to share the proceeds of any winning ticket.
Finally, each of the Winkler family members was treated
as a partner at all times during the operation of the
partnership. For example, each member of the family
attended the meetings with Mr. Oehler and Mr. Turner and
had a say in formulating the written partnership agreement.
Under these circumstances, we find that each of the family
members actually owned a partnership interest as required
by section 704(e). Sec. 1.704-1(e)(2), Income Tax Regs.
Cf. Commissioner v. Culbertson, 337 U.S. 733 (1949); S & M
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