Byrd v. Commissioner
United States Tax Court
Petitioners are transferees. As shareholders of transferor, they sold all of the stock of transferor, a subchapter S corporation, to a third party in March of 1980 and the transferor was liquidated. Transferor, a corporation engaged in the nursery business, had deducted in prior years the expenses of growing plants which remained in its inventory of plants at the time of liquidation.
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Petitioners are transferees. As shareholders of transferor, they sold all of the stock of transferor, a subchapter S corporation, to a third party in March of 1980 and the transferor was liquidated. Transferor, a corporation engaged in the nursery business, had deducted in prior years the expenses of growing plants which remained in its inventory of plants at the time of liquidation. Held, the value of the inventory of plants which were transferred to the purchaser must be included in the income of the transferor, and hence the petitioners, in 1980 under the tax benefit rule.
1Opinion of the Court
Carlton L. Byrd, Transferee of the Assets of Eastern Shore Nursery, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent; Robert H. Willey, Jr., Transferee of the Assets of Eastern Shore Nursery, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Byrd v. Commissioner
Docket Nos. 32626-84, 32699-84
United States Tax Court
87 T.C. 830; 1986 U.S. Tax Ct. LEXIS 34; 87 T.C. No. 52;
October 27, 1986, Filed
Decision will be entered for the respondent.
Petitioners are transferees. As shareholders of transferor, they sold all of the stock of transferor, a subchapter S corporation,…
2Cases cited5 opinions
- Hillsboro National Bank v. CommissionerSupreme Court of the United States · 1983
- Block v. CommissionerUnited States Board of Tax Appeals · 1939
- Union Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
- Byrd v. CommissionerUnited States Tax Court · 1986
- Ballou Const. Co., Inc. v. United StatesDistrict Court, D. Kansas · 1985