Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Taxation-Federal

University of Michigan Law School

1949

Tax Court

Articles 1 - 3 of 3

Full-Text Articles in Law

Taxation--Income Tax--Family Partnerships--Application Of The Tower-Lusthaus Doctrine, Earl R. Boonstra S.Ed. Dec 1949

Taxation--Income Tax--Family Partnerships--Application Of The Tower-Lusthaus Doctrine, Earl R. Boonstra S.Ed.

Michigan Law Review

Respondent and his four sons formed a partnership in 1939. The sons contributed cattle and property purchased from respondent who accepted their notes in return. Subsequently, part of the notes were forgiven and part paid from shares of the firm proceeds. A firm bank account was opened on which all members could draw. It was planned that all the sons would render substantial services to the partnership. However, the plan was disrupted when the two eldest were called to military duty, and the two minor sons continued their education. A partnership return was filed for 1940. The Commissioner determined a …


Taxation-Income Tax-Validity Of Family Partnership Where Partner's Services Are To Be Performed In Future, Daniel W. Reddin, Iii S.Ed. Feb 1949

Taxation-Income Tax-Validity Of Family Partnership Where Partner's Services Are To Be Performed In Future, Daniel W. Reddin, Iii S.Ed.

Michigan Law Review

In 1939, petitioner sold certain ranch properties and half of his herd of blooded cattle to his four sons, accepting their notes in return. A firm consisting of petitioner and his sons was then formed, and a bank account was opened upon which any of the members of the firm could draw. Two of the sons were minors, but all were ranch-reared and experienced in cattle raising. The sons paid part of the notes with their shares in the proceeds from firm sales, and petitioner forgave the rest. Military duty disrupted the plan by which all the sons were to …


Taxation-Income Tax-Taxable Persons--Assignment Of License Royalties, J. R. Mackenzie S.Ed. Jan 1949

Taxation-Income Tax-Taxable Persons--Assignment Of License Royalties, J. R. Mackenzie S.Ed.

Michigan Law Review

X contracted with a corporation controlled by him for the manufacture of machines on which he held patents. No minimum was established with respect to production or the payment of royalties. The contracts were terminable by either party upon notice, and X was free to make similar contracts with other manufacturers. X assigned all his interest in the contracts and exclusive title and power over the royalties to his wife, who thereafter received all payments and reported them as her income. The Tax Court ruled that since X could cancel the contracts directly, and could indirectly control the contracts through …