Woodson v. Commissioner
United States Tax Court
In 1974, petitioner received a net lump-sum distribution of $ 25,485.98 from a profit-sharing trust. On June 30, 1975, respondent retroactively revoked the trust's exempt status effective Apr. 1, 1973. Held, portion of distribution attributable to contributions made in years trust exempt, entitled to capital gain treatment under sec. 401(a)(2), I.R.C. 1954; portion attributable to contributions made when trust nonexempt, taxable as ordinary income, sec. 402(b). Greenwald v.…
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In 1974, petitioner received a net lump-sum distribution of $ 25,485.98 from a profit-sharing trust. On June 30, 1975, respondent retroactively revoked the trust's exempt status effective Apr. 1, 1973. Held, portion of distribution attributable to contributions made in years trust exempt, entitled to capital gain treatment under sec. 401(a)(2), I.R.C. 1954; portion attributable to contributions made when trust nonexempt, taxable as ordinary income, sec. 402(b). Greenwald v. Commissioner, 366 F.2d 538 (2d Cir. 1966), revg. in part 44 T.C. 137 (1965), followed.
1Opinion of the Court
OPINION
Sterrett, Judge:
In a notice of deficiency dated October 6, 1978, respondent determined a deficiency in the income taxes paid by petitioners for their taxable years ended December 31, 1970 and 1971, in the amounts of $512.34 and $6,491.60, respectively. After concessions, the only remaining issue for our decision is whether that part of the net distribution, which was received from a profit-sharing trust not qualified or exempt under sections 401(a) and 501(a), I.R.C. 1954, that is attributable to contributions made to the trust in years when it was qualified, should be taxed as…
2Cases cited5 opinions
- Helvering v. GregoryCourt of Appeals for the Second Circuit · 1934
- Harold D. Greenwald and Nana Greenwald, on Review v. Commissioner of Internal Revenue, on ReviewCourt of Appeals for the Second Circuit · 1966
- Greenwald v. CommissionerUnited States Tax Court · 1965
- Royer's, Inc. v. United StatesCourt of Appeals for the Third Circuit · 1959
- Epstein v. CommissionerUnited States Tax Court · 1978
3Cited by16 opinions
- Baetens v. CommissionerUnited States Tax Court · 1984
- Curtis B. Woodson and Estate of Fern R. Woodson, Etc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
- Boggs v. CommissionerUnited States Tax Court · 1984
- Fazi v. CommissionerUnited States Tax Court · 1994
- Benbow v. CommissionerUnited States Tax Court · 1984
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