Forman
Forman v. Commissioner of Internal Revenue
Opinion
Opinion
Harrison, J.
This is a petition to review a decision of the Tax Court which determined that no partnership existed between petitioner and his wife for income tax purposes during the year 1945. The deficiency amounted to $18,983.55.
The record discloses that on October 1, 1941, petitioner married his present wife, Marion. She had about $14,000, the proceeds of an insurance policy on the life of her deceased former husband.
Prior to 1940, the petitioner was employed by his brother, William Forman, as manager of a theatre at a salary of $50 or $60 per week.
At the time of said marriage, petitioner and his brother, William Forman, had become partners in the operation of two theatres, entirely financed by petitioner’s said brother. While the two theatres so purchased constituted partnership assets, the title was taken and remained in the name of William, and the leases to the premises in which the theatres were operated were executed by William in his own name. This partnership was an attempt to establish the petitioner on his feet financially.
The initial venture was successful and they desired to expand their operations by acquiring additional theatres, but they had no capital with which to…