Wisconsin Department of Revenue v. Lake Wisconsin Country Club

GARTZKE, P.J.

(dissenting). It is undisputed that the dominant motive for payment of the assessments is to retain membership privileges in Lake Wisconsin rather than to invest. Memberships are not transferra-ble. A member who withdraws loses all paid-in assessments. Failure to pay the assessments results in a loss of membership.

An investment motive and a proprietary interest in the corporation are indicia of capital contributions. Washington Athletic Club v. United States, 614 F.2d 670, 675 (9th Cir. 1980); See also 7 Mertens, The Law of Federal Income Taxation sec. 38.22 at 52-53 (1984). Those factors being absent, I would affirm the circuit court.