Transfer of capital interest to a family member in a family partnership to a member of the same family (including only his or her spouse, ancestors and lineal descendants) generally makes the member a partner if:
A bona fide transfer by gift or purchase of a capital interest in the partnership has occurred;
The member actually owns the partnership interest and is vested with dominion and control over it;
The partnership is one in which capital is a material income-producing factor; and
A valid partnership was in existence before the transfer or was created at the time of the transfer.