Niedermeyer v. Commissioner
United States Tax Court
Petitioners, husband and wife, owned 22.58 percent of the common stock of AT&T and 125 shares of its preferred stock. Two of petitioners' sons owned 67.91 percent of the common stock of AT&T. Petitioners owned no stock of Lents but three of their other sons owned 67 percent of its common stock. On Sept. 8, 1966, petitioners sold their AT&T common stock to Lents, and on Dec. 28, 1966, petitioners contributed their AT&T preferred stock to the Niedermeyer Foundation.
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Petitioners, husband and wife, owned 22.58 percent of the common stock of AT&T and 125 shares of its preferred stock. Two of petitioners' sons owned 67.91 percent of the common stock of AT&T. Petitioners owned no stock of Lents but three of their other sons owned 67 percent of its common stock. On Sept. 8, 1966, petitioners sold their AT&T common stock to Lents, and on Dec. 28, 1966, petitioners contributed their AT&T preferred stock to the Niedermeyer Foundation. Held, (1) the sale of the AT&T common stock constituted a redemption through the use of a related corporation under sec.…
1Opinion of the Court
SteReett, Judge:
The respondent determined a deficiency of $73,-280.08 in the Federal income taxes of the petitioners for the calendar year 1966. The ultimate issue presented requires our determination of (1) whether the sale by petitioners of all their common stock in American Timber & Trading Co., Inc., to Lents Industries, Inc., was a redemption through the use of a related corporation under section 304(a)(1),1 I.R.C. 1954, and, if so, (2) whether the redemption should be treated as a distribution in full payment in exchange for the redeemed stock under section 302(a) or as a distribution…
2Cases cited22 opinions
- Commissioner v. BrownSupreme Court of the United States · 1965
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- United States v. DavisSupreme Court of the United States · 1970
- O. H. Kruse Grain & Milling v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1960
- Cary v. CommissionerUnited States Tax Court · 1963
17 more not listed; retrieve them via the Exa API.
3Cited by36 opinions
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Blanche S. Benjamin v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1979
- Metzger Trust v. CommissionerUnited States Tax Court · 1981
- Bernard E. Niedermeyer and Tessie S. Niedermeyer v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1976
- Gunther v. CommissionerUnited States Tax Court · 1989
31 more not listed; retrieve them via the Exa API.