Flexer Theatres of Mississippi, Inc. v. United States

McALLISTER, Circuit Judge.

This is an appeal from a judgment of the district court denying refund of federal income taxes, and arises out of the transfer of partnership assets to a Corporation. Two corporations were involved, but for the purposes of this case, only one corporation will be referred to.

The partnership, operating several theatres and owning considerable real estate, originally consisted of fo.ur partners, Bernard and Nell P. Haberfeld, and David and Eleanor H. Flexer.

The Haberfelds, on October 21, 1946, entered into a contract with the Flexers to sell all of their interest,…