In 1936, a taxpayer sold his interest in a partnership the assets of which were mainly acquired subsequent to his entering the partnership in 1932. The government contended that the taxpayer acquired and disposed of an interest in specific partnership assets and that the period for determining the capital gains percentages was properly measured from the date of acquisition of the specific capital assets. In his suit for refund on part of the tax thus computed, the taxpayer claimed that the partnership was a separate juristic entity, that his interest therein was an intangible capital asset, and that the period for determining the applicable capital gains percentages should be dated from his acquisition of the interest in the partnership. Held, that a partnership is an association of individuals vested with co-interests in specific partnership property and that the date of the acquisition of the specific assets marks the beginning of the period for ascertaining capital gain percentages. City Bank Farmers Trust Co. v. United States, (Ct. Cl. 1942) 47 F. Supp. 98.
TAXATION - FEDERAL INCOME TAX - CAPITAL GAIN ON SALE OF PARTNERSHIP INTEREST,
Mich. L. Rev.
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