Sorem v. Commissioner
United States Tax Court
Petitioners, who were partners, transferred 100 percent of the stock of four grocery store corporations of which they were the sole owners to Boogaart Supply Co., Inc., of which they were major stockholders in exchange for cash and cancellation of indebtedness. Held, the distribution was essentially equivalent to a dividend.
1Opinion of the Court
Withey, Judge:
Respondent determined the following deficiencies in the income tax of petitioners for the year 1958:
Doclcet. No. Petitioners Deficiency
93586 3. Milton and Wanda M. Sorem_-_$17, 790. 06
94707 R. W. and Margaret Boogaart_ 18, 550. 09
Pursuant to petitioners’ motion, both cases were consolidated for trial.
The sole issue for decision is whether the transfer by petitioners1 Boogaart and Sorem of all of the stock of four corporations of which they were the sole owners to Boogaart Supply Co., Inc., of which they were major stockholders, in exchange for cash and cancellation of…
2Cases cited5 opinions
- Elizabeth N. B. Ferro v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1957
- Heman v. CommissionerUnited States Tax Court · 1959
- Lewis v. CommissionerUnited States Tax Court · 1960
- Charles P. Ballenger, Jr., and Myrtle S. Ballenger v. United StatesCourt of Appeals for the Fourth Circuit · 1962
- Kerr v. CommissionerUnited States Tax Court · 1962
3Cited by16 opinions
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Meyer v. CommissionerUnited States Tax Court · 1966
- Baker Commodities, Inc., a California Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1969
- Lewis v. CommissionerUnited States Tax Court · 1966
- Haserot v. CommissionerUnited States Tax Court · 1966
11 more not listed; retrieve them via the Exa API.