-357-
some of the payments from The Five, as well as income that he
earned providing services to Hi-Chicago Trust, this transaction
does not fit that mold. The payments to THC from The Five and
Hi-Chicago Trust represented compensation to Kanter for personal
services. Here, however, there is no evidence Kanter provided
any personal services or assistance to CMS Investors, Alpha,
Delta, Shelburne, or Century. Rather, Delta and Alpha made bona
fide loans to Shelburne and Century. Under the circumstance, we
see no justification for concluding that THC served as Kanter’s
alter ego for purposes of this transaction. Without more, THC’s
distributive share of CMS Investors’ partnership items must be
respected. Accordingly, we hold Kanter is not taxable on the
income which flowed through CMS Investors to THC for the taxable
years 1982, 1983, 1984.142
ISSUE VII. Whether Kanter Received Unreported Income From
Equitable Leasing Co., Inc., During 1983 (STJ report
at 128-129)
FINDINGS OF FACT
Respondent determined in the notice of deficiency issued to
the Kanters for 1983 that Kanter failed to report income of
$635,250 for that year. As discussed in detail below, this
adjustment is attributable to respondent’s determination that
Kanter attempted to assign to THC and Zion income he earned from
142 Consequently, we need not address Kanter’s collateral
estoppel argument.
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