Markosian v. Commissioner
United States Tax Court
Petitioners transferred all of their business and personal assets, including Louis' dental equipment, his lifetime services, and all remuneration therefrom, to a family trust under which they were the only trustees. Petitioners continued to use their home and personal assets, and Louis continued to use his office and dental equipment in his practice. Louis, however, received all of the gross income from his dental practice and deposited it in his personal account.
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Petitioners transferred all of their business and personal assets, including Louis' dental equipment, his lifetime services, and all remuneration therefrom, to a family trust under which they were the only trustees. Petitioners continued to use their home and personal assets, and Louis continued to use his office and dental equipment in his practice. Louis, however, received all of the gross income from his dental practice and deposited it in his personal account. Petitioners then paid 80 percent of the gross income from the dental practice to the trust as a "fee." Held, the trust was devoid…
1Opinion of the Court
Drennen, Judge:
Respondent has determined a deficiency of $10,312 in petitioners’ income tax for the taxable year 1975. The issues for our decision are:(1) Whether a trust purportedly created by petitioners is entitled to be recognized as an entity separate and distinct from the taxpayers;(2) Alternatively, whether the taxpayers are to be treated- as owners of the trust under sections 671 through 677, I.R.C. 1954;1 and(3) Whether a management fee paid by petitioners to the trust created by them is deductible under section 162.
FINDINGS OF FACT
Some of the facts have been stipulated and are so…
2Cases cited11 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Vercio v. CommissionerUnited States Tax Court · 1980
- Wesenberg v. CommissionerUnited States Tax Court · 1978
- Furman v. CommissionerUnited States Tax Court · 1966
6 more not listed; retrieve them via the Exa API.
3Cited by135 opinions
- George v. Zmuda and Walburga Zmuda v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- Zmuda v. CommissionerUnited States Tax Court · 1982
- Luman v. CommissionerUnited States Tax Court · 1982
- Vercio v. CommissionerUnited States Tax Court · 1980
- Professional Services v. CommissionerUnited States Tax Court · 1982
130 more not listed; retrieve them via the Exa API.