Krause v. Commissioner
United States Tax Court
On Feb. 5, 1959, petitioners executed a partnership agreement wherein they formed a limited partnership known as A. K. Co. Contemporaneously, petitioners created six trusts; Adolph created three trusts naming their children as beneficiaries, and Janet created three trusts naming their grandchildren as beneficiaries. The children's trusts were funded with $ 100 and 50 shares of Wolverine, while the grandchildren's trusts were funded with $ 100 and 25 shares of Wolverine.
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On Feb. 5, 1959, petitioners executed a partnership agreement wherein they formed a limited partnership known as A. K. Co. Contemporaneously, petitioners created six trusts; Adolph created three trusts naming their children as beneficiaries, and Janet created three trusts naming their grandchildren as beneficiaries. The children's trusts were funded with $ 100 and 50 shares of Wolverine, while the grandchildren's trusts were funded with $ 100 and 25 shares of Wolverine. Simultaneous with the execution of the above-noted documents, Adolph executed a series of agreements wherein he agreed to…
1Opinion of the Court
Sterrett, Judge:
The respondent determined deficiencies in petitioners’ Federal income tax for the taxable years 1964, 1965, and 1966 in the respective amounts of $24,852.27, $30,843.80, and $42,878.31.
The issues presented for determination are:(1) Whether the six trusts created by petitioners for the benefit of their children and grandchildren are bona fide partners in A. K. Co., a limited partnership.(2) Whether the trusts are controlled by the grantor trust provisions, thereby causing the trusts income to be taxable to petitioners.
FINDINGS OF FACT
Some of the facts have been stipulated and…
2Cases cited23 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Commissioner v. BrownSupreme Court of the United States · 1965
- National Licorice Co. v. National Labor Relations BoardSupreme Court of the United States · 1940
- Commissioner v. LesterSupreme Court of the United States · 1961
- Estate of Spiegel v. CommissionerSupreme Court of the United States · 1949
18 more not listed; retrieve them via the Exa API.
3Cited by25 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
- Blitzer v. United StatesUnited States Court of Claims · 1982
- Adolph K. Krause and Janet S. Krause v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1974
- Ketter v. CommissionerUnited States Tax Court · 1978
- Buehner v. CommissionerUnited States Tax Court · 1976
20 more not listed; retrieve them via the Exa API.