ATTORNEYS ARE BAD EXAMPLE
The article on assignment of income in the October issue of The CPA Journal contains an inappropriate illustration of the tax benefits of an attorney forming a limited partnership with nonattorney children. A partnership between an attorney and nonattorneys cannot legally practice law. The transaction would be deemed a sham. If the law practice income rose, the major portion thereof would be due to the efforts of the practicing attorney. At best, the compensation for the use of equipment would be similar to a leasing company being entitled to a fair fee but certainly not a share of profits. *
Ernest R. Field, Attorney at Law, Great Neck, NY
©2009 The New York State Society of CPAs. Legal Notices
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