BA 3301 Lecture Notes - Lecture 44: Thaler, Legal Personality, Net Income
Document Summary
Includes general law partnerships and persons who receive income jointly. Mcdonald v fct 87 atc 4511 their respective property interest. (cid:120) facts: taxpayer and his wife jointly purchased 2 home units and derived rental income from them. It was agreed that the taxpayer"s share of the net profit of the partnership was 25% and his wife"s share of the net profit was 75%, and the taxpayer would absorb all losses. Agreement was initially oral and later documented in writing. Taxpayer argued that there was a general law and tax law partnership, and the partnership property was the 2 home units. Net loss was made in income year ending 30/6/78, and taxpayer claimed full amount of loss as deduction. Commissioner argued that there was only co-ownership, so only half of loss could be deducted. (cid:120) decision: taxpayer entitled to deduction for half of the loss.
