- 3 -
Middlebelt Road, Garden City, Michigan (Automotive Property).
In 1984, William bought his brother-in-law's one-half
interest in Lakeview's predecessor partnership, thereby acquiring
a 100-percent ownership interest. That same year, William
incorporated Lakeview, and he and petitioner became 50-percent
shareholders.2 William retained direct ownership of the
Automotive Property, however.
William also owned the lot adjacent to the Automotive
Property, at 6435 Middlebelt Road (Fence Property), on which he
operated the Stark Fence Company. The rear and side doors of the
Automotive Property building were not accessible except through
the Fence Property. On September 29, 1989, for the consideration
of $1, William transferred the Fence Property to Lakeview Realty
Company, a general partnership formed on the same date and in
which William and petitioner each owned a 50-percent capital
interest. There is no evidence that petitioner made any capital
contribution to the Lakeview Realty Company partnership in
exchange for his 50-percent capital interest. The Fence Property
was appraised at $150,000 on October 30, 1989. Also on September
29, 1989, William conveyed his interest in the Automotive
Property by a quitclaim deed to Lakeview for the consideration of
$1.
Petitioner and William began to have disagreements that made
2 Lakeview elected S corporation status on Dec. 23, 1988.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011