Schroeder v. Commissioner
United States Tax Court
1. Shares of stock in a closely held corporation valued for estate tax purposes. 2. Decedent received from the estate of her husband a note which had been taxed as a part of his estate within five years prior to her death. The proceeds from the payment of the note were deposited in decedent's bank account. Held, that the previously taxed property has been identified and the amount thereof is deductible under section 812 (c) of the Internal Revenue Code.
1Opinion of the Court
OPINION.
ARUNdell, Judge:
The valuation for estate tax purposes of shares of stock of a closely held corporation imposes at best a difficult question of fact. The matter is made more difficult where, as here, the overwhelming control of the company is in foreigners and the company itself is operating under governmental supervision.
The Heberlein Patent Corporation was primarily organized and operated for the purpose of exploiting in this country the use of certain textile patents of Swiss origin on a royalty basis. The corporation’s earnings from this source had been steadily going down in the…
2Cases cited1 opinion
- Miller v. CommissionerUnited States Tax Court · 1944
3Cited by16 opinions
- Estate of Andrews v. CommissionerUnited States Tax Court · 1982
- Estate of Gilford v. CommissionerUnited States Tax Court · 1987
- Estate of Spruill v. CommissionerUnited States Tax Court · 1987
- Estate of Murphy v. CommissionerUnited States Tax Court · 1990
- Wortmann v. Comm'rUnited States Tax Court · 2005
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