Kinsey v. Commissioner
United States Tax Court
After the corporation had adopted a plan of liquidation under sec. 337 of the Code, had exercised its rights to sell its assets under an outstanding sales agreement, and had made the first distributions in such liquidation, petitioner Kinsey donated a 56-percent interest in the corporation to DePauw, a charity. Held: Petitioners are taxable on the liquidating distributions DePauw received when the liquidation was brought to a close.
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After the corporation had adopted a plan of liquidation under sec. 337 of the Code, had exercised its rights to sell its assets under an outstanding sales agreement, and had made the first distributions in such liquidation, petitioner Kinsey donated a 56-percent interest in the corporation to DePauw, a charity. Held: Petitioners are taxable on the liquidating distributions DePauw received when the liquidation was brought to a close. A major portion of the distributions in liquidation had been made prior to the date of the gift and after DePauw received its interest in the corporation, it was…
1Opinion of the Court
Irwin, Judge:
Respondent determined a deficiency in petitioners’ income tax for the year 1965 in the amount of $58,187.42. The question presented is whether petitioners are taxable on a distribution in liquidation in 1965 because of corporate stock donated to DePauw University after tbe corporation had adopted a plan of liquidation under section 337 of the Code.1
FINDINGS OF FACT
Some of the facts have been stipulated. These facts and the exhibits attached thereto are herein incorporated by this reference.
John P. and Edith B. Kinsey, who are husband and wife, were residents of New Hartford,…
2Cases cited8 opinions
- Helvering v. HorstSupreme Court of the United States · 1940
- Rushing v. CommissionerUnited States Tax Court · 1969
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Jacobs v. United StatesDistrict Court, S.D. Ohio · 1966
- Winton v. KelmDistrict Court, D. Minnesota · 1954
3 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Rauenhorst v. Comm'rUnited States Tax Court · 2002
- Palmer v. CommissionerUnited States Tax Court · 1974
- Edwin W. Hudspeth and Maxine G. Hudspeth v. United StatesCourt of Appeals for the Eighth Circuit · 1972
- John P. Kinsey and Edith B. Kinsey v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1973
- S. C. Johnson & Son, Inc. v. CommissionerUnited States Tax Court · 1975
24 more not listed; retrieve them via the Exa API.