Stewart Trust v. Commissioner
United States Tax Court
National Co., which was engaged in the mortgage banking business, sold all of its assets and then distributed the proceeds to its shareholders in complete liquidation.
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National Co., which was engaged in the mortgage banking business, sold all of its assets and then distributed the proceeds to its shareholders in complete liquidation. Held, the entire portion of the gain realized from the sale of National Co.'s mortgage servicing agreement is entitled to nonrecognition treatment under sec. 337. Held, further, legal and accounting fees incurred in connection with the sale of National Co.'s assets are not deductible as ordinary and necessary business expenses.
1Opinion of the Court
Wiles, Judge:
The respondent has determined that the petitioners are liable, as transferees, for deficiencies in Federal income taxes due from the National Co. of Omaha, transferor, for the taxable years ended October 31, 1962, and October 31, 1965, as follows:
Year Deficiency
Oct. 31,1962 _ $8,148.00
Oct. 31,1965 _ 221,927.19
230,075.19
The issues for decision are: (1) Whether National Co. is entitled to nonrecognition treatment pursuant to section 3372 with regard to gain realized upon the sale of mortgage servicing agreements as part of the sale of all of its assets to First National; and (2)…
2Cases cited21 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Wood Harmon Corporation v. United StatesCourt of Appeals for the Second Circuit · 1963
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
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3Cited by12 opinions
- Storz v. CommissionerUnited States Tax Court · 1977
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- Altec Corp. v. CommissionerUnited States Tax Court · 1977
- Estate of Munter v. CommissionerUnited States Tax Court · 1975
- Estate of Munter v. CommissionerUnited States Tax Court · 1975
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