-38-
however, we begin with a brief summary of some of the facts found
therein and also make some additional findings pertinent to this
opinion.
As discussed above, Spalding was the 100-percent owner of
INI. The consolidated entity through Spalding was a partner in
Airport Parking Venture I (Carport Partnership), a general
partnership engaged in providing parking services at an airport.
On September 30, 1988, as part of their agreement to splitup
Spalding and INI, Jones (petitioner in this case) and Cates
executed irrevocable voting proxies that deconsolidated Spalding
and INI.
In INI, Inc. v. Commissioner, supra, this Court found as
fact that pursuant to the Amendment executed on March 1, 1989,
Spalding was to dispose of Spalding's interest in the Carport
Partnership and transfer to INI $100,000 less one-half of the
expense associated with disposing of Spalding's interest in the
partnership. Thereafter, Spalding disposed of its interest in
the Carport Partnership, and pursuant to the Amendment Spalding
paid INI $80,051. Although the payment belonged to INI,
respondent introduced evidence at trial in this case which shows
that the check for $80,051 was actually made payable to
petitioner.
Respondent determined that the $80,051 paid by Spalding to
INI was dividend income paid by Spalding to petitioner. At
trial, respondent argued that petitioner received the $80,051 as
dividend income from either Spalding or INI.
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