Frantz v. Commissioner
United States Tax Court
Petitioner owned 65 percent of the common stock and 13 percent of the preferred stock of a corporation. He surrendered to the corporation his preferred stock and certain advances owing to him from the corporation. The surrender was non pro rata with respect to other shareholders. Petitioner subsequently sold his common stock. Held: Petitioner did not sustain a loss on his surrender to the corporation of his preferred stock and advances.
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Petitioner owned 65 percent of the common stock and 13 percent of the preferred stock of a corporation. He surrendered to the corporation his preferred stock and certain advances owing to him from the corporation. The surrender was non pro rata with respect to other shareholders. Petitioner subsequently sold his common stock. Held: Petitioner did not sustain a loss on his surrender to the corporation of his preferred stock and advances. His surrender constituted a contribution to the capital of the corporation. To the extent that our prior cases hold that a non pro rata surrender of stock to…
1Opinion of the Court
Sterrett, Judge-.
In his notice of deficiency dated August 28, 1979, respondent determined a $78,440.97 deficiency in petitioners’ Federal income tax for the year 1973. In an amendment to his answer, respondent asserted an additional deficiency in the amount of $13,249.03. After concessions by the parties, the primary issues remaining for decision are:(1) Whether petitioner Leroy Frantz, Jr., sustained a loss during 1973 from surrender to a corporation, of which he was a principal common shareholder, of his preferred stock in the corporation, as well as certain advances previously made by him…
2Cases cited38 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- James v. United StatesSupreme Court of the United States · 1961
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Whipple v. CommissionerSupreme Court of the United States · 1963
- Morgan v. CommissionerUnited States Tax Court · 1966
33 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Commissioner v. FinkSupreme Court of the United States · 1987
- Herman v. CommissionerUnited States Tax Court · 1985
- Leroy Frantz, Jr. And Sheila Frantz v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1986
- Peter R. Fink Karla S. Fink v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1986
- Commissioner v. FinkSupreme Court of the United States · 1987
7 more not listed; retrieve them via the Exa API.