Conrad Fitzgerald Lewis - Page 17

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          or other unincorporated organization through or by means of which           
          any business, * * * or venture is carried on, and which is not,             
          within the meaning of this * * * [subtitle], a corporation or a             
          trust or estate.”  See also sec. 7701(a)(2).                                
               A partnership is created “when persons join together their             
          money, goods, labor, or skill for the purpose of carrying on a              
          trade, profession, or business and when there is community of               
          interest in the profits and losses.”  Commissioner v. Tower, 327            
          U.S. 280, 286 (1946).                                                       
               Whether parties have formed a partnership is a question of             
          fact, and while all circumstances are to be considered, the                 
          essential question is whether the parties intended to, and did in           
          fact, join together for the present conduct of an undertaking or            
          enterprise.  Luna v. Commissioner, 42 T.C. 1067, 1077 (1964).               
               Petitioner stated that Ms. Lewis’s name was on the                     
          commercial lease contract, the phone bills, and the utility bills           
          because he had “bad credit” and needed her creditworthiness to              
          enter into the lease and obtain phone and utility services.                 
          Petitioner further testified that profits and expenses stemming             
          from the business were not split between himself and Ms. Lewis.             
          Ms. Lewis’s Federal income tax returns for taxable years 2000,              
          2001, and 2002, confirm that she did not report any of the income           
          generated by the business.  Her Federal income tax returns for              
          the taxable years 2000, 2001, and 2002, report that her income              

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Last modified: May 25, 2011