Bentley v. Commissioner
United States Tax Court
Petitioners for some years had been carrying on a business in corporate form. They were dissatisfied with the small amount of profits left to them after taxes and wanted to sell or liquidate the corporation. At the suggestion of their tax counsel, the corporation was liquidated and the wives of petitioners formed a partnership and entered into an agreement with their husbands, the petitioners, to continue to operate the business on a salary.
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Petitioners for some years had been carrying on a business in corporate form. They were dissatisfied with the small amount of profits left to them after taxes and wanted to sell or liquidate the corporation. At the suggestion of their tax counsel, the corporation was liquidated and the wives of petitioners formed a partnership and entered into an agreement with their husbands, the petitioners, to continue to operate the business on a salary. The assets of the former corporation were rented from its stockholders. The transaction resulted in no change in policy or interruption in the operation…
1Opinion of the Court
Elwin S. Bentley, Petitioner, v. Commissioner of Internal Revenue, Respondent. E. Merritt Ashworth, Petitioner, v. Commissioner of Internal Revenue, Respondent. LeRoy P. Brownell, Petitioner, v. Commissioner of Internal Revenue, Respondent
Bentley v. Commissioner
Docket Nos. 19783, 19784, 19785
United States Tax Court
14 T.C. 228; 1950 U.S. Tax Ct. LEXIS 275;
February 15, 1950, Promulgated
Decisions will be entered for the respondent.
Petitioners for some years had been carrying on a business in corporate form. They were dissatisfied with the small amount of profits left to them after taxes and…
2Cases cited4 opinions
- Burnet v. LeiningerSupreme Court of the United States · 1932
- Werner v. CommissionerUnited States Tax Court · 1946
- Visintainer v. CommissionerUnited States Tax Court · 1949
- Bentley v. CommissionerUnited States Tax Court · 1950