Supreme Court of the United States
Lusthaus v. Commissioner of Internal Revenue
February 25, 1946327 U.S. 293
Summary
The Court affirmed the lower courts, holding that the alleged husband‑wife partnership was not a genuine partnership for income‑tax purposes and therefore the deficiency assessment stands. Justice Reed dissented, arguing that the partnership was valid and the judgment should be reversed.
Holding
- Whether, for income‑tax purposes, the husband‑wife arrangement constituted a genuine partnership subject to partnership taxation.. No; the arrangement was not a genuine partnership and the deficiency assessment is affirmed.
Docket 263