Srichai and Pusadee Rungrangsi - Page 12

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                    A.  Whatever who want.  I don't--                                 
                    Q.  Would that be Mr. Rungrangsi?                                 
                    A.  Should be.                                                    
               It is evident that the benefits and burdens of ownership of            
          the restaurant were never transferred to Ms. Eagatatt, see Grodt &          
          McKay Realty, Inc. v. Commissioner, supra, and petitioners                  
          continued to retain significant control over the restaurant and its         
          operation, see Tolwinsky v. Commissioner, 86 T.C. 1009, 1041                
          (1986); see also Helvering v. Clifford, 309 U.S. 331 (1940); Hilton         
          v. Commissioner, 74 T.C. 305 (1980), affd. 671 F.2d 316 (9th Cir.           
          1982); Miller v. Commissioner, 68 T.C. 767 (1977).  The transfer of         
          the restaurant to Ms. Eagatatt was intended to create a security            
          interest, see Hedrick v. Commissioner, T.C. Memo. 1980-54; see also         
          Helvering v. F.& R. Lazarus & Co., 308 U.S. 252, 255 (1939), and it         
          is well settled that the mortgaging of property does not constitute         
          a sale or exchange, Woodsam Associates, Inc. v. Commissioner, 16            
          T.C. 649, 653-654 (1951), affd. 198 F.2d 357 (2d Cir. 1952); Lutz           
          & Schramm Co. v. Commissioner, 1 T.C. 682, 689 (1943).  "[T]axation         
          is not so much concerned with the refinements of title as it is             
          with actual command over the property taxed--the actual benefit for         
          which the tax is paid."  Corliss v. Bowers, 281 U.S. 376, 378               
          (1930).                                                                     








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