Mitchell v. Commissioner
United States Tax Court
Petitioner in the year 1948 created separate irrevocable trusts for each of his three minor children to which he contributed stock of a corporation. On August 9, 1954, petitioner sold depreciable property to the corporation. On that date, petitioner, his spouse, and minor children owned directly 79.54 per cent and the trusts created for the two then minor children owned 12.21 per cent of the outstanding stock of the corporation.
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Petitioner in the year 1948 created separate irrevocable trusts for each of his three minor children to which he contributed stock of a corporation. On August 9, 1954, petitioner sold depreciable property to the corporation. On that date, petitioner, his spouse, and minor children owned directly 79.54 per cent and the trusts created for the two then minor children owned 12.21 per cent of the outstanding stock of the corporation. Held: The stock held by the trusts for the benefit of the two minor children was "owned" by the beneficiaries within the meaning of section 1239 of the Internal…
1Opinion of the Court
TRAIN, Judge:
Respondent determined a deficiency in the petitioners’ income tax for the calendar year 1954 in the amount of $19,405.15. The only issue is whether stock held by a trust was “owned” by the beneficiaries thereof within the meaning of section 1239 of the Internal Revenue Code of 1954, making that section applicable to a sale of depreciable property by one of the petitioners to the corporation, some of whose stock was held by the trust.
FINDINGS OF FACT.
Most of the facts are stipulated and are hereby found as stipulated. Only those facts necessary to an understanding of the issue are…
2Cases cited5 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Farr v. CommissionerUnited States Tax Court · 1948
- Sloane v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Steuben Sec. Corp. v. CommissionerUnited States Tax Court · 1943
3Cited by16 opinions
- Yamamoto v. CommissionerUnited States Tax Court · 1980
- Trotz v. CommissionerUnited States Tax Court · 1964
- 10-42 Corp. v. CommissionerUnited States Tax Court · 1971
- Drybrough v. CommissionerUnited States Tax Court · 1964
- Borbonus v. CommissionerUnited States Tax Court · 1964
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