-14-
Petitioner was also in charge of applying for and procuring the
licenses necessary to conduct the operations relating to nursing
homes within the State of Michigan.
A general partner may be deemed to be conducting the trade
or business activity of the partnership in which he or she is a
member. Hoffman v. Commissioner, 119 T.C. 140 (2002); see also
Flood v. United States, 133 F.2d 173, 179 (1st Cir. 1943); Cokes
v. Commissioner, 91 T.C. 222, 228 (1988); Drobny v. Commissioner,
86 T.C. 1326, 1342 (1986); Brannen v. Commissioner, 78 T.C. 471,
504 (1982), affd. 722 F.2d 695 (11th Cir. 1984); Ward v.
Commissioner, 20 T.C. 332, 343 (1953), affd. 224 F.2d 547 (9th
Cir. 1955). See generally Rev. Rul. 92-17, 1992-1 C.B. 142.
Moreover, the trade or business of the partnership may be imputed
to a general partner irrespective of the fact that the partner
did not actively or materially participate in the partnership.
Bauschard v. Commissioner, 31 T.C. 910, 916-917 (1959), affd. 279
F.2d 115 (6th Cir. 1960). Additionally, an individual taxpayer
may be engaged in more than one trade or business. Oliver v.
Commissioner, 138 F.2d 910 (4th Cir. 1943), affg. a Memorandum
Opinion of this Court.
Respondent concedes that petitioner was materially involved
in developing the real estate and nursing home businesses.
Nevertheless, respondent argues that at all times when petitioner
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011