Drybrough v. Commissioner
United States Tax Court
Petitioner transferred improved real estate to five newly formed controlled corporations which assumed existing mortgages. Held, petitioner has failed to show by the clear preponderance of the evidence that his principal purpose with respect to the assumption of the liabilities in the circumstances was not to avoid Federal income tax on the exchange. The entire amount of the liabilities assumed is to be treated as money received by petitioner on the exchange.
Read the full summary
Petitioner transferred improved real estate to five newly formed controlled corporations which assumed existing mortgages. Held, petitioner has failed to show by the clear preponderance of the evidence that his principal purpose with respect to the assumption of the liabilities in the circumstances was not to avoid Federal income tax on the exchange. The entire amount of the liabilities assumed is to be treated as money received by petitioner on the exchange. Sec. 357(b), I.R.C. 1954. Held, further, section 1239, I.R.C. 1954, does not apply to a transfer of depreciable property by petitioner…
1Opinion of the Court
TeaiN, Judge:
Respondent determined deficiencies in the statutory notice, and asserted increased deficiencies in an amended answer to the petition, in petitioners’ income taxes for the years and in the amounts as follows:
[[Image here]]
A number of issues have been settled by stipulation and will be given effect in a Rule 50 computation. The issues which remain for decision are:(1) Whether respondent erred in determining that the assumption of existing mortgages by five controlled corporations to which F. W. Drybrough transferred improved real estate in 1957 was for the principal purpose of…
2Cases cited37 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
- Ach v. CommissionerUnited States Tax Court · 1964
- United States v. HendlerSupreme Court of the United States · 1938
32 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Johnson v. CommissionerUnited States Tax Court · 1973
- H Enters. Int'l v. CommissionerUnited States Tax Court · 1995
- Drybrough v. CommissionerUnited States Tax Court · 1966
- F. W. Drybrough v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1967
- Fisher v. United StatesUnited States Court of Federal Claims · 2008
9 more not listed; retrieve them via the Exa API.