Thomas C. Sandoval, Jr. and Bobbie J. Sandoval - Page 16

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          property is not necessarily a partnership.  See Demirjian v.                
          Commissioner, 54 T.C. 1691, 1697 (1970), affd. per curiam 457               
          F.2d 1 (3d Cir. 1972).  We disagree that petitioner  and Burnett            
          acquired the Babcock Road property as cotenants.                            
               Petitioners contend that petitioner and Burnett formed TGR I           
          after they bought the property to help manage it.  We disagree.             
          Petitioner and Burnett formed TGR I on December 3, 1991,                    
          according to the terms of the written agreement which they signed           
          the following day.  Under Texas law, a partnership can exist                
          without a written agreement.  See Valero Energy Corp. v. Teco               
          Pipeline Co., supra at 584-585; Shindler v. Marr & Associates,              
          695 S.W.2d 699, 703 (Tex. App. 1985); Cavazos v. Cavazos, 339               
          S.W.2d 224, 226 (Tex. Civ. App. 1960).                                      
               The written agreement that they signed on December 4, 1991,            
          stated that their “Joint Venture I” began on December 3, 1991.              
          In the written partnership agreement, petitioner and Burnett                
          agreed (1) to contribute equal sums to own equal interests in TGR           
          I; (2) to share equally in profits, and bear equal responsibility           
          for losses in TGR I; (3) that TGR I would own the real property;            
          (4) to waive their rights to require partition of partnership               
          property; (5) to share equally management and control over TGR I;           
          and (6) to restrict transferring their interests in TGR I.  They            
          specified a principal place of business.  They acquired the                 
          Babcock Road property in the name of TGR I, then sold it for a              

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