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As it cannot be determined what the
allocable share of such partnership income is
for any of the partners for any of the years,
all of the income has been allocated to each
partner, thus increasing your taxable income
a net $37,661, $25,208 and $18,089 [sic] for
taxable years ending December 31, 1990, 1991
and 1993, respectively.
Thus, the notice of deficiency issued to Darwin and his
wife allocates to Darwin 50 percent of the ordinary income,
interest income, and long-term capital gain realized by the
partnership for the years 1990, 1991, and 1993.
Discussion
In its motion for summary judgment, the estate takes
the position that respondent committed error by increasing
James' taxable income by 50 percent of the partnership's
income and, thus, by treating him as subject to tax on all
of the partnership's income. According to the estate, the
State court determined, consistent with Darwin's
allegations, "that a 50-50 partnership did exist between
James and Darwin with respect to the Lake Tobias Animal
Farm." The estate argues that, notwithstanding "Darwin's
eviction from active participation in the business", the
partnership continued to exist during the years in issue
for Federal tax purposes because there was no termination
pursuant to section 708. Thus, according to the estate,
partnership income for the years in issue must be allocated
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