Lowry v. Commissioner
United States Tax Court
Petitioners conducted a business of manufacturing and selling furniture as a corporation. They owned all of the stock. To reduce taxes, they dissolved the corporation and transferred the business to a marital partnership consisting of themselves and their wives. They made gifts of stock to their wives in anticipation of the dissolution of the corporation and the creation of the partnership. The wives did not participate in the business.
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Petitioners conducted a business of manufacturing and selling furniture as a corporation. They owned all of the stock. To reduce taxes, they dissolved the corporation and transferred the business to a marital partnership consisting of themselves and their wives. They made gifts of stock to their wives in anticipation of the dissolution of the corporation and the creation of the partnership. The wives did not participate in the business. Petitioners had complete control over the business, the assets, and the income. Held, that petitioners did not relinquish dominion and control over part of…
1Opinion of the Court
OPINION.
HaRROn, Judge:
Prior to the time when petitioners gave consideration to the matter of dissolving the corporation known as the Charles R. Sligh Co., petitioners owned all of the stock of the corporation. They discussed the tax advantages to be derived from conducting the business as a partnership in comparison with the conduct of the business as a corporation, from January 1937 until the fall of 1938. Upon advice of their tax adviser, petitioners delayed making the conversion from the corporate form to the partnership form until 1938, but the matter was discussed and considered during…
2Cases cited5 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
- Meehan v. ValentineSupreme Court of the United States · 1892
- Tower v. CommissionerUnited States Tax Court · 1944
3Cited by29 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- De Korse v. CommissionerUnited States Tax Court · 1945
- Harris v. CommissionerUnited States Tax Court · 1948
- Scherer v. CommissionerUnited States Tax Court · 1944
- Lowry v. Collector of Internal RevenueMichigan Supreme Court · 1948
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