Smith v. Commissioner
United States Tax Court
Held: (1) On the basis of the facts of record, the transfer by two of petitioners of stock to a corporation of which they were the major but not sole shareholders is determined to be without consideration except the improvement of the financial condition of the corporation, but is not a contribution to capital since the transfer was non-pro-rata with respect to other shareholders; (2) since the transfer was without consideration, no sale or exchange of the stock occurred and…
Read the full summary
Held: (1) On the basis of the facts of record, the transfer by two of petitioners of stock to a corporation of which they were the major but not sole shareholders is determined to be without consideration except the improvement of the financial condition of the corporation, but is not a contribution to capital since the transfer was non-pro-rata with respect to other shareholders; (2) since the transfer was without consideration, no sale or exchange of the stock occurred and therefore the transfer resulted in an ordinary loss to each of the two petitioners of the amount of his basis in the…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in Federal income tax of petitioners David N. Smith and Judith A. Smith for the calendar years 1968 and 1969 in the amounts of $7,333 and $4,916, respectively, and additions to tax under section 6653(a), I.R.C. 1954,1 in the amounts of $367 and $246, respectively. Respondent determined deficiencies in Federal income tax of petitioners Ronald E. Schleppy and Leonette R. Schleppy for the calendar years 1969 and 1970 in the amounts of $45,888 and $4,518, respectively, and an addition to tax under section 6651(a)(1) for the calendar year 1970 in the…
2Cases cited16 opinions
- Enoch v. CommissionerUnited States Tax Court · 1972
- Courtney v. CommissionerUnited States Tax Court · 1957
- W. W. Windle Co. v. CommissionerUnited States Tax Court · 1976
- Robinson v. CommissionerUnited States Tax Court · 1968
- Downer v. CommissionerUnited States Tax Court · 1967
11 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- Commissioner v. FinkSupreme Court of the United States · 1987
- Freeland v. CommissionerUnited States Tax Court · 1980
- Tilford v. CommissionerUnited States Tax Court · 1980
- Henry C. Tilford, Jr. And Barbara N. Tilford v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1983
- Frantz v. CommissionerUnited States Tax Court · 1984
30 more not listed; retrieve them via the Exa API.