Five Star Mfg. Co. v. Commissioner
United States Tax Court
The petitioner obtained a judgment for money borrowed against one of its two stockholders who owned 50 percent of its stock and upon order of the court the stockholder's stock was sold at public auction. The petitioner acquired the stock upon a bid of $ 56,000 and, as permitted by the court, made payment of its bid by crediting $ 56,000 on the judgment it had obtained against the stockholder.
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The petitioner obtained a judgment for money borrowed against one of its two stockholders who owned 50 percent of its stock and upon order of the court the stockholder's stock was sold at public auction. The petitioner acquired the stock upon a bid of $ 56,000 and, as permitted by the court, made payment of its bid by crediting $ 56,000 on the judgment it had obtained against the stockholder. Held, that the petitioner's stock so acquired had a fair market value of at least $ 56,000 on the date of acquisition by the petitioner and that the petitioner is not entitled to deduct any amount,…
1Opinion of the Court
Five Star Manufacturing Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Five Star Mfg. Co. v. Commissioner
Docket No. 77398
United States Tax Court
40 T.C. 379; 1963 U.S. Tax Ct. LEXIS 117;
May 21, 1963, Filed
Decision will be entered for the respondent.
The petitioner obtained a judgment for money borrowed against one of its two stockholders who owned 50 percent of its stock and upon order of the court the stockholder's stock was sold at public auction. The petitioner acquired the stock upon a bid of $ 56,000 and, as permitted by the court, made payment of its bid by crediting…
2Cases cited12 opinions
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- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Hotel Kingkade v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1950
- O'malley, Collector of Internal Revenue v. AmesCourt of Appeals for the Eighth Circuit · 1952
- Whitlow v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1936
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