Blevins v. Commissioner
United States Tax Court
Petitioner, as a partner, received investment credits in 1965 and 1966 arising from the purchase of sec. 38 property by the partnership. On Dec. 31, 1966, the partnership was converted into a corporation pursuant to sec. 351 with petitioner retaining the same percentage interest as he had in the partnership. On July 1, 1968, petitioner made gifts of 53.33 percent of his stock, thereby reducing his interest in the corporation from 45 percent to 21 percent.
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Petitioner, as a partner, received investment credits in 1965 and 1966 arising from the purchase of sec. 38 property by the partnership. On Dec. 31, 1966, the partnership was converted into a corporation pursuant to sec. 351 with petitioner retaining the same percentage interest as he had in the partnership. On July 1, 1968, petitioner made gifts of 53.33 percent of his stock, thereby reducing his interest in the corporation from 45 percent to 21 percent. Held, petitioner's disposition of 53.33 percent of his interest in the corporation triggered a recapture of 53.33 percent of the investment…
1Opinion of the Court
OPINION
IRWIN, Judge:
Respondent determined a deficiency of $2,715.68 in the income tax of petitioners for the calendar year 1968. The only issue in dispute is the recapture of prior years’ investment credits totaling $2,904.88.
All of the facts have been stipulated and are found accordingly.
Petitioners W. Frank Blevins and Henrietta W. Blevins, husband and wife, resided in Greeneville, Tenn., at the time of the filing of the petition herein. For the taxable year 1968 they filed their joint Federal income tax return with the Southeast Service Center, Cham-blee, Ga. Henrietta W. Blevins is a…
2Cases cited2 opinions
- Clayton J. Charbonnet and Adelaide Tutt, Wife of Clayton J. Charbonnet v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- Aboussie v. CommissionerUnited States Tax Court · 1973
3Cited by4 opinions
- Trinova Corp. v. CommissionerUnited States Tax Court · 1997
- Blevins v. CommissionerUnited States Tax Court · 1974
- Trinova Corp. v. CommissionerUnited States Tax Court · 1997
- Trinova Corporation and Subsidiaries v. CommissionerUnited States Tax Court · 1997