https://www.taxtmi.com/caselaws?id=8826 A mutual reduction in one partner's profit-sharing share, with corresponding increases to the others and no consideration, was treated as a transfer of property amounting to a gift for gift-tax purposes. A partner's profit share is property capable of transfer by mutual consent, and the diminution of that interest with accretion to the others brings the arrangement within the gift-tax concept. For valuation, goodwill was held to be only one component of the partnership assets; the taxable value had to be based on the transferred share in the firm's net assets as a whole, including goodwill, rather than goodwill alone. en-us Mon, 27 Nov 1972 00:00:00 +0530 Thu, 04 Jun 2009 18:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8826 A mutual reduction in one partner's profit-sharing share, with corresponding increases to the others and no consideration, was treated as a transfer of property amounting to a gift for gift-tax purposes. A partner's profit share is property capable of transfer by mutual consent, and the diminution of that interest with accretion to the others brings the arrangement within the gift-tax concept. For valuation, goodwill was held to be only one component of the partnership assets; the taxable value had to be based on the transferred share in the firm's net assets as a whole, including goodwill, rather than goodwill alone. Case-Laws Income Tax Mon, 27 Nov 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8826