Kenneth A. Murry and Helen J. Murry v. Commissioner of Internal Revenue, Lakeside Garden Developers, Inc. v. Commissioner of Internal Revenue

We affirm the decision appealed from on the basis of the memorandum opinion of the Tax Court, which we attach as an appendix. In view of the comments offered by our brother in dissent, we wish to highlight the following aspects of the Tax Court’s opinion.

The issue we are called upon to decide is a very narrow one. We have no doubts that, as an initial matter, the Commissioner has the power to look behind the form of a transaction to determine its true substance. Yet the Commissioner does not ask us to decide whether the transfer of title to the recreational facilities from the corporation to…