Cirelli v. Commissioner
United States Tax Court
C's five children formed a "partnership" which leased equipment and a yacht to C corporation, a construction contractor. Held, the partnership is a "sham," whether viewed under the sec. 704(e), I.R.C. 1954, regulations or the test in Commissioner v. Culbertson, 337 U.S. 733 (1949). Held, further, the "partnership's" property will be treated, for Federal tax purposes, as being owned by C corporation.
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C's five children formed a "partnership" which leased equipment and a yacht to C corporation, a construction contractor. Held, the partnership is a "sham," whether viewed under the sec. 704(e), I.R.C. 1954, regulations or the test in Commissioner v. Culbertson, 337 U.S. 733 (1949). Held, further, the "partnership's" property will be treated, for Federal tax purposes, as being owned by C corporation. Held, further, expenses relating to the yacht are not deductible, since the yacht was acquired and used for C's personal purposes. Held, further, constructive dividends to C from C corporation…
1Opinion of the Court
Joyce Ann Cirelli, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Cirelli v. Commissioner
Docket Nos. 14917-82, 14918-82, 14919-82, 14963-82, 14991-82, 14992-82, 15244-82
United States Tax Court
82 T.C. 335; 1984 U.S. Tax Ct. LEXIS 103; 82 T.C. No. 27;
February 28, 1984, Filed
Decisions will be entered under Rule 155.
C's five children formed a "partnership" which leased equipment and a yacht to C corporation, a construction contractor. Held, the partnership is a "sham," whether viewed under the sec. 704(e), I.R.C. 1954, regulations or the test in Commissioner v. Culbertson,…
2Cases cited29 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Challenge Mfg. Co. v. CommissionerUnited States Tax Court · 1962
- American Properties, Inc. v. CommissionerUnited States Tax Court · 1957
- Foster v. Comm'rUnited States Tax Court · 1983
- Ashby v. CommissionerUnited States Tax Court · 1968
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