Spangler v. Commissioner
United States Tax Court
1. Held, that two corporations of which the petitioner was principal shareholder were collapsible corporations within the meaning of section 117(m) of the Internal Revenue Code of 1939, and that gain derived by the petitioner upon the redemption of some of his stock is to be considered as gain from the sale or exchange of property which is not a capital asset. 2. Held, further, that respondent's reliance upon section 117(m), I.R.C. 1939, raised by amendment to his answer,…
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1. Held, that two corporations of which the petitioner was principal shareholder were collapsible corporations within the meaning of section 117(m) of the Internal Revenue Code of 1939, and that gain derived by the petitioner upon the redemption of some of his stock is to be considered as gain from the sale or exchange of property which is not a capital asset. 2. Held, further, that respondent's reliance upon section 117(m), I.R.C. 1939, raised by amendment to his answer, did not constitute "new matter" shifting the burden of proof to him where the deficiency was determined under the broad…
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in income tax for the year 1950 in the amount of $94,832.44. The issue is whether the gain derived by the petitioners upon the redemption of class B stock of Double Oaks Apartments, Inc., and Newland Road Apartments, Inc., in the year 1950 is long-term capital gain as reported by the petitioners or whether it is taxable under section 117 (m) of the Internal Revenue Code of 1939 as gain from the sale or exchange of property which is not a capital asset, as contended by the respondent. A question is also raised as to the basis of the stock.
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2Cases cited5 opinions
- Burge v. CommissionerUnited States Tax Court · 1957
- Tankers v. Steamtug Long BranchCourt of Appeals for the Second Circuit · 1958
- Bryan v. CommissionerUnited States Tax Court · 1959
- Payne v. CommissionerUnited States Tax Court · 1958
- Weaver v. CommissionerUnited States Tax Court · 1959
3Cited by39 opinions
- McSpadden v. CommissionerUnited States Tax Court · 1968
- C. D. Spangler and Veva C. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Rolland L. King and Arlene P. King v. United StatesCourt of Appeals for the Fifth Circuit · 1981
- Estate of Scharf v. CommissionerUnited States Tax Court · 1962
- Farber v. CommissionerUnited States Tax Court · 1961
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