Peeler Realty Co. v. Commissioner
United States Tax Court
On Mar. 30, 1966, petitioner conveyed approximately 25,000 acres of lands to its shareholders as a nonliquidating distribution. In two separate sales the shareholders sold a few acres of such lands in October of that year, and the balance in November. Petitioner did not include the gains from these sales in its corporate tax return.
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On Mar. 30, 1966, petitioner conveyed approximately 25,000 acres of lands to its shareholders as a nonliquidating distribution. In two separate sales the shareholders sold a few acres of such lands in October of that year, and the balance in November. Petitioner did not include the gains from these sales in its corporate tax return. An appeal from the decision in this case lies solely to the Fifth Circuit, which held in Hines v. United States, 477 F.2d 1063 (C.A. 5, 1973), reversing 344 F.Supp. 1259 (N.D. Miss. 1972), that the gains from these sales cannot be imputed to petitioner unless it…
1Opinion of the Court
Forrester, Judge:
Respondent determined a deficiency of $601,-872.58 in petitioner’s income tax for the taxable year ended October 31, 1967. The sole issue presented for our decision is whether petitioner is liable for the corporate income tax on sales by its shareholders of appreciated land which had been conveyed to such shareholders by petitioner as a dividend-in-kind. The two theories under which petitioner might be held liable for such tax — the imputed income and the anticipatory assignment of income doctrines — will be considered separately.
FINDINGS OF FACT
Some of the facts are…
2Cases cited25 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
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3Cited by2 opinions
- Heaton v. United StatesDistrict Court, E.D. Washington · 1983
- Peeler Realty Co. v. CommissionerUnited States Tax Court · 1973