Opinion ID: 390549
Heading Depth: 2
Heading Rank: 1

Heading: Taxpayer's Partnership Theory

Text: 27 The Tax Court determined that the basic nonterminable rights held by the team owners were held apart from their interests in the formal NBA joint venture. Taxpayer argues that these rights should be treated as a partnership interest. When new teams were sold in 1970, the existing owners allegedly transferred a portion of their partnership interests. Sale of a portion of a partnership interest is treated as a sale of a capital asset under I.R.C. § 741. See Rev.Rul. 59-109. 28 We reject this approach. A partnership is: 29 a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a corporation or a trust or estate. 30