Arnes v. Commissioner
United States Tax Court
H and W were married and jointly owned 100 percent of M, which owned and operated a McDonald's restaurant. H and W separated. Subsequently, H and W surrendered their jointly held M shares in exchange for separate certificates reflecting equal ownership.
Read the full summary
H and W were married and jointly owned 100 percent of M, which owned and operated a McDonald's restaurant. H and W separated. Subsequently, H and W surrendered their jointly held M shares in exchange for separate certificates reflecting equal ownership. H, W, and McDonald's agreed that M would redeem W's stock, and that H would guarantee M's obligation to pay W. The agreement was part of the property settlement agreement of H and W, which was subsequently incorporated in their divorce decree. W claimed and sued in the District Court for a tax refund on the grounds that gain from the…
1Opinion of the Court
Fay, Judge:
This case is before the Court on the parties’ cross-motions for summary judgment pursuant to Rule 121.1
By notice of deficiency dated October 8, 1991, respondent determined deficiencies in petitioner’s Federal income taxes as follows:
Year Deficiency. $42,725 CD 00 <J. 27,337 CD 00 00
FINDINGS OF FACT
John A. Arnes (petitioner) resided in Ellensburg, Washington, when he filed the petition.
Petitioner and his former wife, Joann Arnes (Joann), were married in 1970. After having worked for a number of years in McDonald’s restaurants and for McDonald’s Corp. (McDonald’s), petitioner…
2Cases cited21 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Sundstrand Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1992
- Enoch v. CommissionerUnited States Tax Court · 1972
16 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Berger v. CommissionerUnited States Tax Court · 1996
- Read v. CommissionerUnited States Tax Court · 2000
- Craven v. United StatesDistrict Court, N.D. Georgia · 1999
- Cunningham v. CommissionerUnited States Tax Court · 1994
- Arnes v. CommissionerUnited States Tax Court · 1994
7 more not listed; retrieve them via the Exa API.