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Accordingly, we also conclude that Landtrak did not become the
direct or indirect owner of Mr. Comey’s portfolio in 1987 or
1988, whether or not Mr. Comey sold Lumatron stock to Landtrak as
he claims. To the contrary, we conclude that Mr. Comey remained
the title owner as well as the owner for tax purposes of his
portfolio, until Mr. Comey had the stock in his portfolio
reregistered in Landtrak’s name in mid-1992.
Moreover, for the reasons also set forth below, we hold that
although Landtrak became the title owner of Mr. Comey’s portfolio
in mid-1992, it did not become the tax owner. Landtrak (and
Landtrak’s purported ownership of Mr. Comey’s portfolio) are
disregarded for tax purposes, because Landtrak did not have a
business purpose or engage in business activity after Mr.
Riopelle’s ownership ended in 1988. In addition, there is no
evidence that Landtrak had any beneficial interest in, or
dominion or control over, the stock registered in its name.
Purported Transfer of Mr. Comey’s Portfolio to
Lumatron in 1978 and Landtrak in 1987 or 1988
Mr. Comey contends that he transferred his stock portfolio
to Lumatron in 1978. He further contends that ownership of that
portfolio effectively passed to Landtrak in 1987 or 1988, when he
assertedly sold his Lumatron stock to Landtrak.
Mr. Comey specifically contends that his 1978 transfer to
Lumatron was made pursuant to an “Inventor’s Agreement” between
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