Honbarrier v. Commissioner
United States Tax Court
H was the sole shareholder of P. P was engaged in the business of hauling packaged freight in trucks. Its trucking operations were terminated in 1988. By 1990, P had sold its operating assets. P invested the proceeds from the sale of its operating assets in tax-exempt bonds and a municipal bond fund. C was a privately held trucking company that operated as a bulk carrier of chemicals.
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H was the sole shareholder of P. P was engaged in the business of hauling packaged freight in trucks. Its trucking operations were terminated in 1988. By 1990, P had sold its operating assets. P invested the proceeds from the sale of its operating assets in tax-exempt bonds and a municipal bond fund. C was a privately held trucking company that operated as a bulk carrier of chemicals. The majority of C's stock was owned by H. On Dec. 31, 1993, P was merged into C. Pursuant to the merger, H received 17,840 shares of C stock for his P stock. The value of the 17,840 shares was determined to be…
1Opinion of the Court
Ruwe, Judge:
Respondent determined a deficiency in Archie L. and Louise B. Honbarrier’s Federal income tax for 1993 in the amount of $2,090,149. Respondent determined a deficiency in Colonial Motor Freight Line, Inc.’s (Colonial) Federal income tax for 1993 in the amount of $27,374.
The sole issue for decision is whether the merger of Colonial into Central Transport, Inc. (Central), on December 31, 1993, qualifies as a tax-free reorganization within the meaning of section 368(a)(1)(A).1
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, first…
2Cases cited11 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. GroetzingerSupreme Court of the United States · 1987
- Helvering v. PriceSupreme Court of the United States · 1940
- Cortland Specialty Co. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1932
- Wortham MacHinery Company, a Wyoming Corporation v. The United States of AmericaCourt of Appeals for the Tenth Circuit · 1975
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3Cited by2 opinions
- Archie L. and Louise B. Honbarrier v. CommissionerUnited States Tax Court · 2000
- Honbarrier v. CommissionerUnited States Tax Court · 2000