ASA Investerings Partnership, Alliedsignal Inc., Tax Matters Partner - Page 28

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             or recognized upon the sale of the * * * [PPNs]."  Accordingly,                                      
             the primary issue is whether Barber and Dominguito are partners                                      
             with AlliedSignal and ASIC.5                                                                         
                                                    OPINION                                                       
             I.  Applicable Law                                                                                   
                    The Internal Revenue Code provides that a 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".  Secs.                                     
             761(a); 7701(a)(2).  The existence of a valid partnership depends                                    
             on 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.                                                                                   
             Commissioner v. Culbertson, 337 U.S. 733, 742 (1949); Maiatico v.                                    
             Commissioner, 183 F.2d 836, 838 (D.C. Cir. 1950), remanding 12                                       
             T.C. 196 (1949).                                                                                     
             II.  The Parties                                                                                     
                    For purposes of our analysis, we disregard Barber and                                         

                    5  Because we agree with respondent's primary contention, we                                  
             need not decide the economic substance issue.  Cf. ACM                                               
             Partnership v. Commissioner, T.C. Memo. 1997-115 (addressing the                                     
             economic substance issue in a similar transaction).                                                  




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