Yamamoto v. Commissioner
United States Tax Court
Y owned all the stock of P, which in turn owned all the stock of S. S made loans to Y in 1970 and 1971. Y transferred several properties in 1970 and 1971 to S in exchange for cash, releases of indebtedness between Y and S, and assumption of liabilities. S transferred the 1970 properties to P in exchange for consideration equal to S's book value in the properties. Y also transferred cash in 1970 and 1971 to P, in exchange for P stock.
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Y owned all the stock of P, which in turn owned all the stock of S. S made loans to Y in 1970 and 1971. Y transferred several properties in 1970 and 1971 to S in exchange for cash, releases of indebtedness between Y and S, and assumption of liabilities. S transferred the 1970 properties to P in exchange for consideration equal to S's book value in the properties. Y also transferred cash in 1970 and 1971 to P, in exchange for P stock. Held: 1. Y's transfers to S are not exchanges for stock -- the nonrecognition provisions of sec. 351 do not apply. 2. Sec. 1239 does not apply to the transfers.…
1Opinion of the Court
OPINION
Chabot, Judge:*
Respondent determined deficiencies in Federal income tax against petitioners as follows:
Year Deficiency
1970. $5,057.93
1971. 75,577.47
In his amended answer, respondent seeks to increase the deficiency determination for 1970 by $30.19 under section 6214(a),1 for a total deficiency of $5,088.12. This increase arises from differences between the deficiency notice and the stipulations as to amounts allocable to depreciable property.
After respondent’s concession on one 1971 issue, the issues remaining are whether four transfers of property by the husband-petitioner to a…
2Cases cited25 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
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3Cited by34 opinions
- Crown v. CommissionerUnited States Tax Court · 1981
- Associated Wholesale Grocers, Inc., and Its Subsidiary, Super Market Developers, Inc. v. United StatesCourt of Appeals for the Tenth Circuit · 1991
- Cottle v. CommissionerUnited States Tax Court · 1987
- Groetzinger v. CommissionerUnited States Tax Court · 1986
- Estate of Schneider v. CommissionerUnited States Tax Court · 1987
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