- 16 - 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 aPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011