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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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