Rafferty v. Commissioner
United States Tax Court
Petitioners own 100 percent of the issued and outstanding stock of corporations A and C. Corporation A owned 100 percent of the stock of corporation B. Between 1960 and 1965 the sole activity of corporation B was the rental of the business situs formerly owned by corporation A to corporation A. In 1965, corporation B acquired land upon which it had constructed a plant that it rented to corporation C as its business situs.
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Petitioners own 100 percent of the issued and outstanding stock of corporations A and C. Corporation A owned 100 percent of the stock of corporation B. Between 1960 and 1965 the sole activity of corporation B was the rental of the business situs formerly owned by corporation A to corporation A. In 1965, corporation B acquired land upon which it had constructed a plant that it rented to corporation C as its business situs. Held, the distribution of the stock of corporation B by corporation A to petitioners in 1965 constitutes a taxable dividend since corporation B was not engaged in the active…
1Opinion of the Court
Dawson, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for the year 1965 in the amount of $93,119.51. The only issue for decision is whether the distribution of 4,430 shares of stock of Teragram Realty Co., Inc., to petitioners by Rafferty Brown Steel Co., Inc., in 1965 constituted a distribution on which no gain or loss is recognized under the provisions of section 355, I.R.C. 1954.1
FINDINGS OF FACT
Some of ¡the facts have been stipulated by the parties and are found accordingly.
Joseph V. Rafferty and Margaret M. Rafferty (herein called petitioners) are 'husband…
2Cases cited6 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Lewis v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Elliott v. CommissionerUnited States Tax Court · 1959
- Henry H. Bonsall, Jr., and Martha G. Bonsall, C. Jordan Vail and Nancy B. Vail v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1963
- Appleby v. CommissionerUnited States Tax Court · 1961
1 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Proctor v. CommissionerUnited States Tax Court · 1981
- Joseph v. Rafferty v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1971
- King v. CommissionerUnited States Tax Court · 1971
- Bowater Inc. v. CommissionerUnited States Tax Court · 1995
- King v. CommissionerUnited States Tax Court · 1971
2 more not listed; retrieve them via the Exa API.