Easley v. Commissioner
United States Tax Court
Petitioner W. H. Easley conducted a bottling and sales business under a contract with Seven-Up Co. of St. Louis, as a sole proprietorship. He and his wife purportedly transferred undivided interests in the business to W. H. Easley, as trustee for two minor children.
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Petitioner W. H. Easley conducted a bottling and sales business under a contract with Seven-Up Co. of St. Louis, as a sole proprietorship. He and his wife purportedly transferred undivided interests in the business to W. H. Easley, as trustee for two minor children. Upon the facts, held, that petitioners failed to make bona fide transfers of part of the business to the two trusts and, consequently, all of the income of the business is taxable to petitioners as community income.
1Opinion of the Court
OPINION.
Harron, Judge:
The general question is whether, under section 22 (a) of the Internal Revenue Code, the entire income of the business known as Seven-Up Bottling Co. of San Francisco is taxable to petitioners. Petitioners contend that one-half of the income is taxable to two trusts.
Petitioners’ contention is founded upon the claim that they conveyed to the trusts one-fourth interests in the business which petitioner W. H. Easley conducted as a sole proprietorship. The first question, therefore, is whether petitioner did effect transfers of interests in the business, the income of which…
2Cases cited2 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Burnet v. LeiningerSupreme Court of the United States · 1932
3Cited by4 opinions
- Wayne Hugh Easley Trust v. CommissionerCourt of Appeals for the Ninth Circuit · 1955
- Easley Trust v. CommissionerUnited States Tax Court · 1953
- Easley v. CommissionerUnited States Tax Court · 1947
- Wayne Hugh Easley Trust, W. H. Easley, Trustee v. Commissioner of Internal Revenue, Roger Kent Easley Trust, W. H. Easley, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955