Opinion ID: 757033
Heading Depth: 3
Heading Rank: 2

Heading: Bona Fide Business Arrangement

Text: 31 The tax court found that one of Gloeckner's purposes in entering the redemption agreement was to plan for his company's future after he died. He intended for Simone to own and manage the company, so as to prevent outsiders and family members from becoming involved. This factual conclusion is not clear error in light of the evidence in the record, and the Commissioner has given us no reason to think otherwise. 32 Applying relevant legal principles to these facts, we agree with the tax court that the Gloeckner agreement represents a bona fide business arrangement. This test is sufficiently satisfied when the purpose of a restrictive agreement is to maintain current managerial control--whether by family or outsiders. See, e.g., St. Louis County Bank, 674 F.2d at 1210 (family); Estate of Carpenter, 64 T.C.M. (CCH) at 1280 (unrelated business partner).