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sustained by the partnership according to his
share in the profits. [Ill. Ann. Stat. ch. 106�,
par. 18(a) (Smith-Hurd 1987) (emphasis added).]
Accordingly, under section 1.761-1(c), Income Tax
Regs., and the Illinois Uniform Partnership Act, the
Winklers' partnership agreement as it existed at the time
Mrs. Winkler purchased the winning ticket is deemed to have
required an equal distribution of partnership profits and
surplus. Therefore, at that time, each member of the
Winkler family held a 1/7th, or a 14.29-percent, interest
in the winning Lotto ticket through the partnership.
Under the written E & E Family Partnership agreement,
Mr. and Mrs. Winkler each received a 25-percent interest
in the "partnership's income and capital", and each of
the five children received a 10-percent interest. Thus,
under the E & E Family Partnership Agreement, Mr. and
Mrs. Winkler each received a 10.71-percent greater
interest, and each of the children received a 4.29-percent
lesser interest in the partnership profits and surplus than
would have been the case under the oral partnership
agreement. In this situation, there is no basis on which
we can find that Mrs. Winkler made a gift to her children
and, accordingly, we reject respondent's determinations of
gift tax deficiencies that are based upon a finding to the
contrary.
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