Wiebusch v. Commissioner
United States Tax Court
Petitioners operated a ranching business as a sole proprietorship until Jan. 1, 1964. On Jan. 2, 1964, they transferred said assets to a corporation which then elected subch. S status.
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Petitioners operated a ranching business as a sole proprietorship until Jan. 1, 1964. On Jan. 2, 1964, they transferred said assets to a corporation which then elected subch. S status. The fair market value of the assets transferred was $ 292,975, the liabilities transferred or assumed equaled $ 180,441.33, and the petitioners' adjusted basis in the assets was $ 119,219.08. Held, first, pursuant to the provisions of secs. 351 and 357(c) petitioners incurred a recognizable gain of $ 61,222.25 on the transfer and, second, the petitioners are not entitled to deduct any of the corporate losses on…
1Opinion of the Court
FINDINGS OF FACT
SteRRett, Judge:
The Commissioner determined deficiencies in petitioners’ Federal income tax as follows:
Calendar year Amount
1964 _$5, 862. 80
1965 _ 107.01
1966 _ 1,071.80
Concessions have been made by the petitioners leaving the following issues for our determination:(1) Whether petitioners must recognize as gain on the transfer of property to a corporation the excess of liabilities over the basis of the property transferred pursuant to section 357 (c), I.R.C. 1954.1(2) Whether petitioners are precluded by section 1374(c) (2) from deducting losses of an electing small business…
2Cases cited15 opinions
- McDonald v. Board of Election Comm'rs of ChicagoSupreme Court of the United States · 1969
- Crane v. CommissionerSupreme Court of the United States · 1947
- United States v. Maryland Savings-Share Ins. Corp.Supreme Court of the United States · 1970
- Bolger v. CommissionerUnited States Tax Court · 1973
- Parker v. DelaneyCourt of Appeals for the First Circuit · 1950
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3Cited by6 opinions
- J.H. Harris, and William J. Martin v. United StatesCourt of Appeals for the Fifth Circuit · 1990
- Sol Lessinger and Edith Lessinger v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1989
- George W. Wiebusch and Corinna Jane Wiebusch v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1973
- Christopher v. CommissionerUnited States Tax Court · 1984
- SUNDBY v. COMMISSIONERUnited States Tax Court · 2004
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