Alice Berger, et al. - Page 40

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          Issue 3.  Ownership of Woodbine                                             
               The questions for decision on this issue are who owned the             
          Woodbine assets and business from the beginning of 1988 through             
          March 14, 1989, and thereafter, until November 17, 1989.  The               
          answers to these questions should enable us to allocate the tax             
          liabilities on the Woodbine income for those periods and on the             
          gain from the sale of Woodbine to the Kunkowskis.                           
               Income is taxable to the taxpayer who earns and controls it.           
          Lucas v. Earl, 281 U.S. 111 (1930).  "The choice of the proper              
          taxpayer revolves around the question of which person or entity             
          in fact controls the earning of income rather than who ultimately           
          receives the income."  Vercio v. Commissioner, 73 T.C. 1246, 1253           
          (1980) (service income assigned to trust).  The owners of land              
          may be different from the owners of a business located on the               
          land.  See Crawford v. Commissioner, T.C. Memo. 1984-433 (land              
          and farm separate); Blunt v. Commissioner, T.C. Memo. 1966-280              
          (separating mortuary business from land).                                   
               To decide when a transfer is complete for tax purposes, we             
          examine all the surrounding facts and circumstances, no single              
          one of which is controlling.  Baird v. Commissioner, 68 T.C. 115,           
          124 (1977).  The focus of our inquiry, however, is on when the              
          benefits and burdens of ownership have shifted.  Id.  Generally,            
          a transfer is complete upon the earlier of the transfer of title            
          or the shift of the benefits and burdens of ownership.  Deyoe v.            
          Commissioner, 66 T.C. 904, 910 (1976) (citing Dettmers v.                   





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