Dillier v. Commissioner
United States Tax Court
In 1955, the five individual petitioners, engaged as partners in the business of processing and selling sausage products, decided to incorporate the business. It was determined that the four petitioner corporations would be organized, each to take over a portion of the partnership business. Articles of incorporation for the four corporations were filed on July 29, 1955, but it was not until 1956 that most of the steps were taken to transfer the business to the corporations.
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In 1955, the five individual petitioners, engaged as partners in the business of processing and selling sausage products, decided to incorporate the business. It was determined that the four petitioner corporations would be organized, each to take over a portion of the partnership business. Articles of incorporation for the four corporations were filed on July 29, 1955, but it was not until 1956 that most of the steps were taken to transfer the business to the corporations. The stock of each of the four corporations was issued to the five individual petitioners in equal amounts. The business…
1Opinion of the Court
OPINION
Turner, Judge:
The first issue presented is whether the income of the Made Eite business for the period from July 18, 1955, through December 31, 1955, is taxable to the four Made Eite corporations, as the petitioners allege, or to the five partners, as the respondent contends. The respondent has conceded that the income earned during 1956 and succeeding years is taxable to the corporations.
The four Made Eite corporations came into existence when the respective articles of incorporation were filed with the secretary of state of California on July 29, 1955. Cal. Corp. Code, sec. 308.…
2Cases cited5 opinions
- Langdon L. Skarda, Carolyn A. Skarda, Lynell G. Skarda, Kathryn B. Skarda, Cash T. Skarda and Annabel S. Skarda v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1957
- Kessmar Constr. Co. v. CommissionerUnited States Tax Court · 1963
- Fred A. Jarva v. United StatesCourt of Appeals for the Ninth Circuit · 1960
- Niles Fire Brick Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Vaughan Lumber Co. v. United StatesCourt of Appeals for the Fifth Circuit · 1939
3Cited by16 opinions
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- Lewisville Inv. Co. v. CommissionerUnited States Tax Court · 1971
- Made Rite Investment Co. v. CommissionerCourt of Appeals for the Ninth Circuit · 1966
- The Louisville Store of Liberty, Ky., Inc. v. The United States, and Eight Related CasesUnited States Court of Claims · 1967
- Louisville Stone of Liberty, Ky., Inc. v. United StatesUnited States Court of Claims · 1967
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