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service income or assets earned by his personal services out of
his estate to BRT, thereby avoiding potential gift and estate
taxes.
The evidence shows that Kanter funded all or a substantial
portion of BRT. Kanter and his law partners acquired interests
in Cablevision by soliciting investors to finance the purchase of
franchise rights and to finance the construction and expansion of
the cable system. Kanter funded BRT by transferring those
partnership interests to BRT for no consideration. He earned
income for providing investment counseling services that he
credited to the Century Industries capital account of BRT,
thereby funding BRT's interest in Century Industries as well as
funding the income distributions from Century Industries to BRT.
He funded BRT's stock interests in IRA and Holding Co. by
assigning his personal service income to those entities. He also
funded BRT's stock interest in Windy City by transferring assets
to Windy City for less than adequate consideration.
Section 671 provides that the grantor is taxable on the
income attributable to any portion of the trusts for which he is
treated as the owner under subpart E of the Code. The grantor is
not necessarily the grantor named in the trust instrument. For
income tax purposes, the grantor may be the person who funds the
trust. Bixby v. Commissioner, 58 T.C. 757, 791 (1972). This
Court has held that the true grantor is not the one named in the
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