Reddig v. Commissioner
United States Tax Court
In January 1952 petitioners, who were partners in the Maxwell Company, transferred capital interests in the partnership in separate trusts for the benefit of their minor children.
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In January 1952 petitioners, who were partners in the Maxwell Company, transferred capital interests in the partnership in separate trusts for the benefit of their minor children. The trustee was a member of the law firm representing the petitioners in this case and the trust instruments were so worded that important controls were retained by the grantors and the conduct of the parties after the transfer was such that the transfers in trust were not treated as having any material significance. Held, the transfers were not bona fide and respondent was correct in not recognizing the trustee as…
1Opinion of the Court
Mulroney, Judge:
Bespondent determined deficiencies and additions to tax in these consolidated cases, as follows:
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The issue is whether respondent was correct in- not recognizing as a partner in the Maxwell Company partnership, the trustee of certain trusts created by the petitioners for the benefit of their children. The issues under sections 294 (d) (2) and 294 (d) (1) (A) were not contested by the petitioners at the trial and they were not argued on brief. Consequently, they must be deemed to have been abandoned.
FINDINGS OF FACT.
Some of the facts have been stipulated and they…
2Cases cited4 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TowerSupreme Court of the United States · 1946
- National Licorice Co. v. National Labor Relations BoardSupreme Court of the United States · 1940
3Cited by15 opinions
- Krause v. CommissionerUnited States Tax Court · 1972
- Acuff v. CommissionerUnited States Tax Court · 1960
- Hartman v. CommissionerUnited States Tax Court · 1964
- Smith v. CommissionerUnited States Tax Court · 1959
- Max J. Kuney, Jr., and Constance K. Kuney v. United StatesCourt of Appeals for the Ninth Circuit · 1971
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