United States Supreme Court Cases & Opinions

U.S. Supreme Court

Burnet v. Leininger, 285 U.S. 136 (1932)

Burnet v. Leininger

No. 426

Argued February 16, 1932

Decided March 14, 1932

285 U.S. 136

Syllabus

1. Findings of fact of the Board of Tax Appeals, when not challenged as unsupported by evidence, are conclusive on review. P. 285 U. S. 138.

2. A husband who was a member of a partnership agreed with his wife that she should be an "equal partner" with him in his interest in the company, and should share equally with him the profits and losses.

Held:

(1) The agreement did not make the wife a member of the partnership without the consent of the other partners, but amounted, at most, to an equitable assignment of one-half of what her husband should receive from the partnership, she in turn agreeing to make good to him one-half of the losses he might sustain by reason of his membership in the firm. P. 285 U. S. 139.

Page 285 U. S. 137

(2) The husband's distributive share of the net income of the partnership was taxable to him individually under the Revenue Acts of 1918 and 1921. Lucas v. Earl, 281 U. S. 111. P. 285 U. S. 141.

(3) The wife's interest being derived from and dependent upon the husband's distributive share, taxation of the whole as his income is not unconstitutional. Hoeper v. Tax Commission, 284 U. S. 206, distinguished. P. 285 U. S. 142.

51 F.2d 7 reversed.

19 B.T.A. 621 affirmed.

Certiorari, 284 U.S. 608, to review a judgment reversing an order of the Board of Tax Appeals.

Page 285 U. S. 138