West v. Commissioner
United States Tax Court
The petitioners executed formal instruments of assignment to trust of portions of their capital interests in a partnership which was engaged in the mercantile business. They named their children as beneficiaries. The then members of the partnership executed formal consents. The petitioners, as majority partners, retained all rights of management and control over the partnership and its business.
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The petitioners executed formal instruments of assignment to trust of portions of their capital interests in a partnership which was engaged in the mercantile business. They named their children as beneficiaries. The then members of the partnership executed formal consents. The petitioners, as majority partners, retained all rights of management and control over the partnership and its business. Partnership profits were to be credited on the books according to the capital interests, as shown by the books. The majority partners had the right to fix salaries of the partners and to determine…
1Opinion of the Court
OPINION.
Turner, Judge:
We have in this case one of those family arrangements which, if given effect, would materially reduce the income tax burden on the William D. West and Herman O. West profits from the operations of the West Brothers partnership, but which, for practical purposes, effected no material change in the partnership or its operations. In short, it was an arrangement whereby the petitioners through their indulgence in certain ritualistic and legalistic formalities sought to spread their own income between themselves and trusts for their children for income tax purpose without any…
2Cases cited14 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Stern v. CommissionerUnited States Tax Court · 1950
- Batman v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
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3Cited by1 opinion
- West v. CommissionerUnited States Tax Court · 1953