In determining whether a partnership exists, these rules shall apply:
(1) Except as provided by Section 33-41-380 persons who are not partners as to each other are not partners as to third persons;
(2) Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property or part ownership does not of itself establish a partnership, whether such co-owners do or do not share any profit made by the use of the property;
(3) The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived; and
(4) The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but no such inference shall be drawn if such profits were received in payment
(a) as a debt by installments or otherwise,
(b) as wages of an employee or rent to a landlord,
(c) as an annuity to a widow or representative of a deceased partner,
(d) as interest on a loan, though the amount of payment vary with the profits of the business or
(e) as the consideration for the sale of the good will of a business or other property by installments or otherwise.
HISTORY: 1962 Code Section 52-12; 1952 Code Section 52-12; 1950 (46) 1841.