Tower v. Commissioner
United States Tax Court
Prior to August 30, 1937, petitioner owned all but a few shares of stock of a corporation which carried on a business of manufacturing sawmill machinery. Petitioner had been the real operator of the business for ten years. In August of 1937 he decided to dissolve the corporation and transfer the assets and business to a partnership.
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Prior to August 30, 1937, petitioner owned all but a few shares of stock of a corporation which carried on a business of manufacturing sawmill machinery. Petitioner had been the real operator of the business for ten years. In August of 1937 he decided to dissolve the corporation and transfer the assets and business to a partnership. Five days prior to the dissolution of the corporation, and in anticipation thereof, petitioner transferred some of his stock in the corporation to his wife, and two days prior thereto a partnership agreement was executed under which the wife was to be a limited…
1Opinion of the Court
OPINION.
HaReon, Judge'.
The only question for determination is whether petitioner is taxable upon his wife’s distributive share of the net income of the R. J. Tower Iron Works, which was organized as a limited partnership under Michigan law. Under the partnership agreement, petitioner is a general partner and his wife is a limited partner.
Petitioner contends that his wife contributed 39 percent of the assets of the former corporation to the capital of the partnership and that she is a bona fide member of the partnership, entitled to receive a fixed share of its net income, based upon her…
2Cases cited7 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
- Crooks v. HarrelsonSupreme Court of the United States · 1930
2 more not listed; retrieve them via the Exa API.
3Cited by48 opinions
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lorenz v. CommissionerUnited States Tax Court · 1944
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Lowry v. CommissionerUnited States Tax Court · 1944
- Hardymon v. GlennDistrict Court, W.D. Kentucky · 1944
43 more not listed; retrieve them via the Exa API.