Lessinger v. Commissioner
United States Tax Court
Petitioner husband transferred the assets and related business liabilities of his sole proprietorship to his pre-existing wholly owned corporation. No additional stock or securities were issued to petitioner. Held: The exchange requirements of sec. 351, I.R.C. 1954, are met. To the extent that Abegg v. Commissioner, 50 T.C. 145 (1968), affd. on different grounds 429 F.2d 1209 (2d Cir. 1970), is inconsistent in this regard, it is overruled.
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Petitioner husband transferred the assets and related business liabilities of his sole proprietorship to his pre-existing wholly owned corporation. No additional stock or securities were issued to petitioner. Held: The exchange requirements of sec. 351, I.R.C. 1954, are met. To the extent that Abegg v. Commissioner, 50 T.C. 145 (1968), affd. on different grounds 429 F.2d 1209 (2d Cir. 1970), is inconsistent in this regard, it is overruled. Held, further, the liabilities assumed by the corporation are in excess of the adjusted basis of the transferred assets and, therefore, gain is recognized…
1Opinion of the Court
Clapp, Judge:
Respondent determined deficiencies in petitioners’ Federal income tax in the amounts of $114,147.30 and $1,427.50 for the taxable years 1977 and 1978, respectively.
After concessions, the issues remaining for decision are: (1) Whether petitioner Sol Lessinger should recognize gain of $251,014, in the taxable year 1977 pursuant to section 357(c);1 and (2) whether petitioner Edith Lessinger is entitled to relief from liability for the 1977 deficiency under the provisions of section 6013(e).
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioners…
2Cases cited24 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Sonnenborn v. CommissionerUnited States Tax Court · 1971
- J. E. Davant and Kathryn Davant v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. J. E. Davant and Kathryn DavantCourt of Appeals for the Fifth Circuit · 1966
- South Texas Rice Warehouse Co. v. CommissionerUnited States Tax Court · 1965
- McCoy v. CommissionerUnited States Tax Court · 1972
19 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Bokum v. CommissionerUnited States Tax Court · 1990
- Patricia A. Price v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1989
- Richard D. Bokum, Ii, Margaret B. Bokum v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1993
- Norman v. CommissionerUnited States Tax Court · 1987
- Cohen v. CommissionerUnited States Tax Court · 1987
19 more not listed; retrieve them via the Exa API.