Robert L. Allum - Page 30

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          trainer a one-half interest in the animal once he had recovered             
          acquisition costs and expenses.  Id. at 721.  The taxpayer did              
          not make the promise in lieu of payment of the standard trainer’s           
          fee, however, and continued to compensate the trainer for the               
          services he provided in relation to the horse until the time of             
          the transfer.  After the transfer, the taxpayer and the trainer             
          made joint decisions regarding the horse, created a partnership             
          agreement, agreed to share profits equally, computed what the               
          partnership’s tax return would show (although they did not file a           
          partnership return for the year in issue), and reported the                 
          results of the computation on their individual returns.  Id. at             
          722, 723.  Because of the presence of all of these factors, we              
          found that the taxpayer and the trainer had formed a joint                  
          venture.  Id. at 725.  McDougal, therefore, is distinguishable              
          from this case because there is no evidence petitioner and his              
          attorney agreed to form a partnership, shared control over                  
          petitioner’s legal claims, considered their relationship a                  
          separate entity for tax purposes or treated it as such, or                  
          considered the attorney’s fees to be anything other than                    
          compensation for services.  Consequently, we reject petitioner’s            
          contention.                                                                 
          C. Conclusion                                                               
               Because the Supreme Court’s opinion in Commissioner v.                 
          Banks, 543 U.S. ___, 125 S. Ct. 826 (2005), is controlling, we              






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