Boettger v. Commissioner
United States Tax Court
Petitioners, stockholders in Oak Park, received by way of distribution pursuant to the "split-up" of that corporation, stock of Oak Park North, a wholly owned subsidiary, in exchange for their Oak Park stock; other stockholders of Oak Park received stock of Germ, a second wholly owned subsidiary, in exchange for their Oak Park stock. The business engaged in by Germ immediately after the "split-up" had been acquired by Oak Park 2 1/2 years earlier in a taxable transaction.
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Petitioners, stockholders in Oak Park, received by way of distribution pursuant to the "split-up" of that corporation, stock of Oak Park North, a wholly owned subsidiary, in exchange for their Oak Park stock; other stockholders of Oak Park received stock of Germ, a second wholly owned subsidiary, in exchange for their Oak Park stock. The business engaged in by Germ immediately after the "split-up" had been acquired by Oak Park 2 1/2 years earlier in a taxable transaction. Held, the distributions to petitioners fail to qualify under sec. 355, I.R.C. 1954, because the "active business"…
1Opinion of the Court
Withey, Judge:
The respondent determined the following deficiencies in these consolidated cases:
Docket No. Year Deficiency
5632-66_ 1964 $14,402.45
5689-66_ 1964 13,205.57
5690-66_ 1964 9,682.39
The issue presented is whether section 355 2 applies to the distributions to petitioners by Oak Park of the stock of its wholly owned subsidiary, Oak Park North.
FINDINGS OF FACT
All of the facts having been stipulated, they are so found.
Lloyd Boettger and his wife Vivian Boettger, Theodore P. Pulas and his wife Dorothy H. Pulas, and John A. Cook and his wife Virlie V. Cook each filed timely joint income tax…
2Cases cited5 opinions
- Coady v. CommissionerUnited States Tax Court · 1960
- Commissioner of Internal Revenue v. Marne S. Wilson, Marjorie M. Wilson, Lyle C. Wilson and Peggy WilsonCourt of Appeals for the Ninth Circuit · 1965
- Lester v. CommissionerUnited States Tax Court · 1963
- Wilson v. CommissionerUnited States Tax Court · 1964
- Burke v. CommissionerUnited States Tax Court · 1964
3Cited by4 opinions
- Nielsen v. CommissionerUnited States Tax Court · 1973
- Andrew M. Spheeris and Ismene Spheeris v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1972
- Boettger v. CommissionerUnited States Tax Court · 1968
- Nielsen v. CommissionerUnited States Tax Court · 1973