Borkowski v. Commissioner
United States Tax Court
(1) P, a dentist, incorporated his dental laboratory and transferred 40 percent of the stock of such corporation to 2 of his 5 children. Such corporation elected to be taxed as a small business corporation. Subsequently, P transferred 40 percent of the stock in such corporation, previously owned by him, to 2 of his other children.
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(1) P, a dentist, incorporated his dental laboratory and transferred 40 percent of the stock of such corporation to 2 of his 5 children. Such corporation elected to be taxed as a small business corporation. Subsequently, P transferred 40 percent of the stock in such corporation, previously owned by him, to 2 of his other children. Held, such transfers were ineffective for Federal income tax purposes since they lacked economic reality, and P remained the beneficial owner of such stock; therefore, all the income of such corporation is taxable to P. (2) Such corporation used, in part, for…
1Opinion of the Court
M. JOHN BORKOWSKI and LORRAINE BORKOWSKI, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Borkowski v. Commissioner
Docket No. 14957-79.
United States Tax Court
T.C. Memo 1982-87; 1982 Tax Ct. Memo LEXIS 664; 43 T.C.M. (CCH) 593; T.C.M. (RIA) 82087;
February 18, 1982.(1) P, a dentist, incorporated his dental laboratory and transferred 40 percent of the stock of such corporation to 2 of his 5 children. Such corporation elected to be taxed as a small business corporation. Subsequently, P transferred 40 percent of the stock in such corporation, previously owned by him, to 2 of his other…
2Cases cited26 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. TowerSupreme Court of the United States · 1946
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
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