Robin Haft Trust v. Commissioner
United States Tax Court
Pursuant to the arrangements leading to a divorce and a property settlement, the stock held by the petitioners was redeemed. Before the redemption, each petitioner owned, actually and constructively, 31 2/3 percent of the stock of the corporation; after the redemption, each owned, actually and constructively, 33 1/3 percent.
Read the full summary
Pursuant to the arrangements leading to a divorce and a property settlement, the stock held by the petitioners was redeemed. Before the redemption, each petitioner owned, actually and constructively, 31 2/3 percent of the stock of the corporation; after the redemption, each owned, actually and constructively, 33 1/3 percent. Held, the attribution rules of sec. 318, I.R.C. 1954, are applicable, notwithstanding the "family fight," and the payments the petitioners received from the redemption were essentially equivalent to dividends under sec. 302(b)(1), I.R.C. 1954; held, further, since the…
1Opinion of the Court
Simpson, Judge:
In these consolidated cases, the respondent determined the following deficiencies in the petitioners’ Federal income taxes for the year 1967:
Docket No. Petitioner Deficiency
5879-71 Robin Haft Trust_ $17, 445. 49
5880-71 Wendy Laura Haft Trust_ 17, 445. 49
5881-71 Lisa Ann Haft Trust_ 17,445. 49
5882-71 Daniel Foster Haft Trust_ 17, 445.49
The issues which must be decided are whether the redemption of certain stock held by the petitioners (1) was not essentially equivalent to a dividend under section 302(b) (1) of the Internal Revenue Code of 1954,2 or (2) resulted in a complete…
2Cases cited21 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Palmer v. HoffmanSupreme Court of the United States · 1943
- Edwards v. Cuba RailroadSupreme Court of the United States · 1925
- United States v. DavisSupreme Court of the United States · 1970
- Cary v. CommissionerUnited States Tax Court · 1963
16 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Haft Trust v. CommissionerUnited States Tax Court · 1974
- Metzger Trust v. CommissionerUnited States Tax Court · 1981
- Deyoe v. CommissionerUnited States Tax Court · 1976
- Dunavant v. CommissionerUnited States Tax Court · 1974
24 more not listed; retrieve them via the Exa API.