Harder Services, Inc. v. Commissioner
United States Tax Court
Harder Tree in 1964 agreed to acquire by merger Cardinal Maintenance, which was then owned by Rogers. As a result of the merger, Rogers received 11 percent of the outstanding stock of Harder Tree and entered into an employment agreement providing, inter alia, that if his employment were to be terminated by Harder Tree, Rogers could require the company to repurchase his Harder Tree stock.
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Harder Tree in 1964 agreed to acquire by merger Cardinal Maintenance, which was then owned by Rogers. As a result of the merger, Rogers received 11 percent of the outstanding stock of Harder Tree and entered into an employment agreement providing, inter alia, that if his employment were to be terminated by Harder Tree, Rogers could require the company to repurchase his Harder Tree stock. The price for such a repurchase was to be determined by a formula based upon gross sales. The business of Cardinal Maintenance was not profitable following its acquisition by Harder Tree. In 1967 Rogers'…
1Opinion of the Court
Fay, Judge:
Respondent determined corporate income tax deficiencies against petitioner, as transferee of Harder Tree Service, Inc., for the taxable years and in the amounts as follows:
TYE Dec. 31— Deficiency TYE Dec. 31— Deficiency
1964. $1,399.99 1966. $6.22
1965. 1,252.50 1968. 15,008.04
The principal issue for decision is whether all or any portion of the sum of $100,677.44 paid by Harder Tree Service, Inc., in 1967 for the repurchase of certain of its outstanding shares is deductible in connection with the termination of business of a subsidiary in 1967. The deficiencies determined for the…
2Cases cited20 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
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- Yagoda v. CommissionerUnited States Tax Court · 1962
- Bos Lines, Inc., Transferee v. Commissioner of Internal Revenue, Bos Lines, Inc., Transferee of the Transferee v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1965
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