W. F. Strasburger and Mildred Strasburger v. Commissioner of Internal Revenue

The taxpayer, W. F. ■ Strasburger, is engaged in the business of selling household appliances at retail; he, also owns tenement buildings. 1 In July 1956, he contracted to buy all the stock in The Valley Exchange, Inc., which operated a restaurant, and also the real estate on which the restaurant was located. However, in closing the transaction, the taxpayer had the real estate conveyed to the corporation rather than to himself. The taxpayer contends that the purchase was handled this way in order to facilitate the retention or transfer of a liquor license held by the corporation. The total…