Estate of Allison v. Commissioner
United States Tax Court
Decedent received interest-bearing notes for the major portion of substantial advances made to an electing small business corporation of which he was a shareholder. Held, even if such advances are considered contributions to capital, rather than bona fide indebtedness, such advances and notes do not constitute a second class of stock under sec. 1371(a) (4), I.R.C. 1954.
1Opinion of the Court
TanneNWaud, Judge:
Respondent determined deficiencies in. the decedent’s income tax for 1963,1964, and 1966 as follows:
Year ending Deficiency determined
December 31, 1963_$49, 982. 52
December 31, 1964_ 32,145. 00
November 23,1966_ 11, 695. 59
In view of petitioners’ concessions, the only issue remaining for decision is whether advances by decedent to a certain corporation, in which the decedent was also a shareholder, created a second class of stock so as to make the corporation ineligible to be treated as a sub-chapter S corporation (sec. 1371 et seq.) ,1
FINDINGS OP PACT
Some of the facts 'have…
2Cases cited10 opinions
- Commissioner of Internal Revenue v. OPP Holding Corp.Court of Appeals for the Second Circuit · 1935
- Raynor v. CommissionerUnited States Tax Court · 1968
- Jewel Tea Co. v. United StatesCourt of Appeals for the Second Circuit · 1937
- Gamman v. CommissionerUnited States Tax Court · 1966
- Stinnett v. CommissionerUnited States Tax Court · 1970
5 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Brutsche v. CommissionerUnited States Tax Court · 1976
- Portage Plastics Company, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1972
- Brutsche v. CommissionerUnited States Tax Court · 1976
- Estate of Allison v. CommissionerUnited States Tax Court · 1971
- Estate of Leavitt v. CommissionerUnited States Tax Court · 1988
5 more not listed; retrieve them via the Exa API.