John P. Thompson and Wife Mary Carol Thompson v. Ellis Campbell, Jr., District Director of Internal Revenue

This case closely parallels Campbell v. Wheeler, 5 Cir., 1965, 342 F.2d 837. The origin of the fortunes and the planned mechanism of the personal loan from the bank secured by prescribed assets of Taxpayer, the incorporation of the controlled corporation, the transfer of the encumbered assets to the corporation, and the assumption by the corporation of the former personal liability to the bank of the transferor-Taxpayer were substantially identical. The difference was twofold. In Wheeler the taxpayer obtained a finding from the trial Court that the transfer and assumption of liability had a…