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that she signed the gift tax return on an accountant's
advice despite the fact that she did not intend to make a
gift of the ticket, as credible and as consistent with the
other facts and circumstances of this case.
Finally, we must determine the Winklers' respective
partnership interests at the time Mrs. Winkler purchased
the winning ticket. Normally, a partner's interest in the
partnership is determined by the partnership agreement.
Sec. 704(a); sec. 1.704-1(a), Income Tax Regs. In this
case, there was no written partnership agreement when
Mrs. Winkler purchased the winning ticket, and the members
of the Winkler family had not yet agreed upon specific
partnership interests. However, section 1.761-1(c), Income
Tax Regs., provides that "As to any matter on which [a]
partnership agreement, or any modification thereof, is
silent, the provisions of local law shall be considered to
constitute part of the agreement." See also sec. 1.704-
1(b)(2)(ii)(h), Income Tax Regs. At all relevant times,
the Illinois Uniform Partnership Act provided that absent
agreement to the contrary:
Each partner shall be repaid his contribution,
whether by way of capital or advances to the
partnership property and share equally in
the profits and surplus remaining after all
liabilities, including those to partners, are
satisfied; and must contribute towards the
losses, whether of capital or otherwise,
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