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may be taxed to him as his income, whether he sees fit
to enjoy it or not. * * *
Effect of 1992 Transfer of Title to Landtrak
In mid-1992, Mr. Comey caused the stock in his portfolio to be
reregistered in Landtrak’s name. Following this transfer of
title, $2,919 in dividends was paid on stock registered in
Landtrak’s name, and the $591,438 proceeds of the sales of that
stock by PaineWebber were paid to accounts maintained in
Landtrak’s name.
We consider whether this transfer of title to Landtrak
sufficed to make Landtrak, rather than Mr. Comey, the party
taxable on these dividends and net capital gain. We conclude it
did not so suffice, and that Mr. Comey’s income includes the
dividends and net capital gain as determined by respondent.
First, as we have just explained, Mr. Comey personally
received the income generated by his portfolio and appears to
have used it for his personal benefit, while the portfolio was
registered in his name. There is no evidence that Mr. Comey’s
dominion or control over, or his beneficial enjoyment of the
fruits of, his portfolio was diminished by its brief
reregistration in Landtrak’s name.
Second, as explained supra pp. 18-21, a corporation may be
disregarded for tax purposes if it has no business purpose and
engages in no business activity. Petitioners have failed to show
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