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Memorandum Opinion of this Court dated Mar. 13, 1953; Wichita
Terminal Elevator Co. v. Commissioner, 162 F.2d 513, 516 (10th
Cir. 1947), affg. 6 T.C. 1158, 1164 (1946); Cluck v.
Commissioner, 105 T.C. 324, 338 (1995); Bruno v. Commissioner,
T.C. Memo. 1990-109.
Generally, the Court is not required to accept the
self-serving testimony of interested parties. See Day v.
Commissioner, 975 F.2d 534, 538 (8th Cir. 1992); Geiger v.
Commissioner, 440 F.2d 688, 689-690 (9th Cir. 1971), affg. per
curiam T.C. Memo. 1969-159; Sharwell v. Commissioner, 419 F.2d
1057, 1060 (6th Cir. 1969), vacating and remanding on other
issues T.C. Memo. 1968-89; Tokarski v. Commissioner, 87 T.C. 74,
77 (1986); Surloff v. Commissioner, 81 T.C. 210, 239 (1983).
Petitioner argues that the annuity trust constituted a valid
business entity that should be recognized for Federal income tax
purposes and that gain from sale of the pizza business to Beagley
and Lundell should be charged to petitioner only as annuity
payments are received by petitioner and his wife beginning in the
year 2023. Respondent contends that the annuity trust
constituted a sham trust that lacked economic substance, that the
annuity trust was used only for tax avoidance purposes, and that
proceeds received in 1994 relating to sale of the pizza business
to Beagley and Lundell should be charged to petitioner. We agree
with respondent.
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