1979 Tax Ct. Memo LEXIS 488 | Tax Ct. | 1979
MEMORANDUM OPINION
DAWSON,
OPINION OF SPECIAL TRIAL JUDGE
CALDWELL,
Respondent determined deficiencies of $ 1,432.95 and $ 1,060.10 in petitioner's Federal income taxes for the years 1973 and 1974, respectively. In the notice of deficiency respondent increased taxable income for the following items which were not reported as taxable income on petitioner's tax returns:
1973 | 1974 | |
Wages | $ 12,766.89 | $ 13,304.40 |
Interest | 0 | 15.78 |
Petitioner reported (incorrectly, respondent asserts) on his Federal income tax returns the following amounts which he purportedly received from the above-mentioned trusts:
1973 | 1974 | |
Business Income | $ 5,542.99 | $ 7,205.30 |
The legal issue for decision in this case is whether the purported conveyance by petitioner of his lifetime services to family trusts was effective to shift the incidence of taxation on amounts representing compensation to him but paid to the trusts. On facts substantially the same as those involved here we have recently held that such purported conveyances were simply an assignment of income and ineffective to shift the tax burden thereon from the taxpayer to the trusts there involved.
Since there are no genuine issues of material fact present in this case, and since the respondent has demonstrated that he is entitled to prevail as a matter of law, it follows that respondent's motion should be granted.