Estate of Munter v. Commissioner
United States Tax Court
Held: Recovery of previously expensed items in a liquidating sale is not protected from recognition by sec. 337. Therefore, the recovery is taxable under the tax benefit rule to the extent of the tax benefit, and petitioners are liable for the tax as transferees of the assets of the corporation.
1Opinion of the Court
OPINION
Irwin, Judge:
Respondent determined a deficiency in income tax of Neat Laundry, Inc., for the taxable year 1967 in the amount of $75,190.16, and notified petitioners that the following liabilities, constituting their liability as transferees of the assets of the corporation, would be assessed against them:
Docket No. Transferee liability
8178-71_ $75,190.16
1534-72 _ 61,781.97
The issues for determination are: (1) Whether Neat Laundry, Inc., is required under the tax benefit rule to include in its 1967 income the amount received from the sale of its previously expensed rental items even…
2Cases cited21 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Lewyt Corp. v. CommissionerSupreme Court of the United States · 1955
- Fribourg Navigation Co. v. CommissionerSupreme Court of the United States · 1966
- Lawrence v. CommissionerUnited States Tax Court · 1957
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3Cited by44 opinions
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- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Tennessee Carolina Transp., Inc. v. CommissionerUnited States Tax Court · 1975
- Allen P. Unvert and Catherine R. Unvert v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
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