- 64 -
Commissioner, 633 F.2d 512, 514-517 (7th Cir. 1980), affg. 72
T.C. 521 (1979); Frazell v. Commissioner, 88 T.C. 1405, 1412
(1987); Cusick v. Commissioner, T.C. Memo. 1998-286. And, mere
coownership of property as tenants in common or otherwise does
not result in a partnership. See Bergford v. Commissioner, 12
F.3d 166, 169 (9th Cir. 1993), affg. Alhouse v. Commissioner,
T.C. Memo. 1991-652; Cusick v. Commissioner, supra. Petitioner
testified that when he initially invested in the acreage in the
Angel-Royse Property, it was “landlocked” and “it wasn’t
developable property.” He also testified that Mr. McLaughlin
held an adjoining tract of land that could provide access to the
property and that Mr. McLaughlin’s ownership of this tract
prompted their entering into a “partnership”. However, neither
petitioner nor Mr. McLaughlin testified as to any development
activity or plans for development on the Angel-Royse Property.
Neither testified regarding whether they had any expectation of a
profit from their activities and as to what kind of business
activity their partnership was to engage in; i.e., subdivision,
development, real estate sales, etc. There is substantial
evidence of record that the property was not the subject of any
business activity, and, indeed, the record indicates that
petitioner and Mr. McLaughlin were allowing the property to
waste.45 There is no evidence of any partnership returns’ having
45Petitioner testified that Mr. McLaughlin “let a guy come
(continued...)
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