Miami Nat'l Bank v. Commissioner
United States Tax Court
C transferred certain stock of P, owned by him prior to such transfer, to a broker to be held in a subordinated securities account. Under the terms of such account, C retained some of the incidents of ownership, including the right to dividends and the right to vote the stock; but the broker acquired legal title to the stock, and it could be sold to satisfy the claims of creditors of the broker.
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C transferred certain stock of P, owned by him prior to such transfer, to a broker to be held in a subordinated securities account. Under the terms of such account, C retained some of the incidents of ownership, including the right to dividends and the right to vote the stock; but the broker acquired legal title to the stock, and it could be sold to satisfy the claims of creditors of the broker. While such account was in effect, C and other persons purported to sell to DL their stock in P, which constituted in excess of 80 percent of P's stock. Held, C was the beneficial owner of the stock…
1Opinion of the Court
OPINION
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioner’s corporate income taxes:
FYEApr. 30— Deficiency
1970. $394,746.52
1971. 833,513.58
The parties have settled numerous issues; the only one remaining for decision is whether the petitioner, Miami National Bank, was eligible to file a consolidated return with Data Lease Financial Corp. (Data Lease). That issue turns on whether Data Lease "owned directly,” within the meaning of section 1504(a) of the Internal Revenue Code of 1954,1 certain stock which was held in a subordinated securities account with a…
2Cases cited21 opinions
- James v. United StatesSupreme Court of the United States · 1961
- Helvering v. San Joaquin Fruit & Investment Co.Supreme Court of the United States · 1936
- Norman A. Landry v. Hemphill, Noyes & Co., Norman A. Landry v. Hemphill, Noyes & Co.Court of Appeals for the First Circuit · 1973
- Alfred N. Hoffman and Deli Hoffman v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Reba Martin, Inc.Court of Appeals for the Fifth Circuit · 1968
- Gordon v. duPont Glore Forgan Inc.Court of Appeals for the Fifth Circuit · 1973
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3Cited by8 opinions
- Walter W. Cruttenden and Fay T. Cruttenden v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Lorch v. CommissionerUnited States Tax Court · 1978
- INI, Inc. v. CommissionerUnited States Tax Court · 1995
- Charles T. McCord, Jr. and Mary S. McCord, Donors v. CommissionerUnited States Tax Court · 2003
- Lorch v. CommissionerUnited States Tax Court · 1978
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