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Whether a valid partnership exists for Federal income tax
purposes is governed by Federal law. See Commissioner v.
Culbertson, 337 U.S. 733 (1949); Lusthaus v. Commissioner, 327
U.S. 293 (1946); Commissioner v. Tower, 327 U.S. 280 (1946);
Bergford v. Commissioner, 12 F.3d 166 (9th Cir. 1993), affg.
Alhouse v. Commissioner, T.C. Memo. 1991-652; Community Bank v.
Commissioner, 819 F.2d 940, 942 (9th Cir. 1987), affg. 79 T.C.
789 (1982); Frazell v. Commissioner, 88 T.C. 1405, 1412 (1987);
Wheeler v. Commissioner, T.C. Memo. 1978-208.
A partnership, for Federal income tax purposes, is defined
in section 761(a) as "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, and
which is not, within the meaning of this * * * [subtitle], a
corporation or a trust or estate." See also sec. 7701(a)(2).
The term "partnership" as defined by the Internal Revenue Code is
broader in scope than the common law meaning of partnership, and
may include groups not traditionally considered partnerships.
Sec. 1.761-1(a), Income Tax Regs.
A partnership is created "when persons join together their
money, goods, labor, or skill for the purpose of carrying on a
trade, profession, or business and when there is a community of
interest in the profits and losses." Commissioner v. Tower,
supra at 286. Generally, "each partner contributes one or both
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