Evans v. Commissioner
United States Tax Court
Petitioner assigned to his wholly owned corporation his one-half interest in a partnership (and not merely the right to future income) in which capital was a material income-producing factor.
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Petitioner assigned to his wholly owned corporation his one-half interest in a partnership (and not merely the right to future income) in which capital was a material income-producing factor. Held, that despite the fact that petitioner did not advise his partner of the assignment, and despite the fact that for State purposes the petitioner remained a partner after the assignment, the petitioner was no longer a partner for Federal income tax purposes (secs. 708 and 704(e), I.R.C. 1954), and that therefore he was no longer subject to tax upon the income attributable to the interest assigned or…
1Opinion of the Court
OPINION
The respondent does not question the separate identities of the petitioner and the corporation, nor does he contend that the execution of the “Assignment of Partnership Interest” by petitioner on January 2, 1961, was a sham. However, he contends that since the petitioner did not obtain the consent of his partner, Zeier, to the assignment, such assignment did not effect a transfer to the corporation of petitioner’s entire partnership interest, but effected no more than an assignment of the right to future income to which petitioner would be entitled as a partner; that the petitioner…
2Cases cited11 opinions
- Burnet v. LeiningerSupreme Court of the United States · 1932
- Sperapani v. CommissionerUnited States Tax Court · 1964
- Adair v. Bank of America National Trust & Savings Ass'nSupreme Court of the United States · 1938
- Lehman v. CommissionerUnited States Tax Court · 1946
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Fifth Circuit · 1949
6 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Quick Trust v. CommissionerUnited States Tax Court · 1970
- Harris v. CommissionerUnited States Tax Court · 1974
- Donald L. Evans and Joan Evans v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1971
- Carriage Square, Inc. v. CommissionerUnited States Tax Court · 1977
- Donald A. Jackson, Jr. And Marilynn Jackson v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
21 more not listed; retrieve them via the Exa API.