Stanley Forman Reed,
Pfaff v. Commissioner of Internal Revenue…
“ Petitioners are the executors of a deceased physician who during 1935 was a member of a medical partnership and entitled to forty per cent of its profits. He died December 25, 1935, on which date there were outstanding about $69,000 of partnership accounts receivable for services rendered to patients during his lifetime. His death worked a dissolution of the partnership under § 62 (4) of the New York Partnership Law, Consol.Laws, c. 39. The decedent's interest in these accounts came to over $27,000. Both he and the partnership were on a cash basis. ”
