Trotz v. Commissioner
United States Tax Court
On March 1, 1958, petitioner Harry Trotz sold nearly all of his construction business assets to a newly-formed corporation. The 400 shares of stock were issued 79 percent to Trotz and his wife, and 21 percent to Ben F. Kelly, Jr., who gave petitioner a note for the purchase price of the stock and a written pledge and assignment of the stock certificate as security for the note.
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On March 1, 1958, petitioner Harry Trotz sold nearly all of his construction business assets to a newly-formed corporation. The 400 shares of stock were issued 79 percent to Trotz and his wife, and 21 percent to Ben F. Kelly, Jr., who gave petitioner a note for the purchase price of the stock and a written pledge and assignment of the stock certificate as security for the note. Kelly also gave petitioner an option to buy stock in his name at book value, with no value ascribed to intangibles, at any time he (Kelly) ceased to be an officer of the corporation. Under the bylaws, petitioner, as…
1Opinion of the Court
Fat, Judge*:
Respondent determined deficiencies in petitioners’ income tax for the years 1958 and 1959 in the amounts of $12,048.58 and $6,400.30, respectively. By an amendment to his answer, respondent claimed an additional deficiency for the year 1958 in the amount of $3,454.59.
The issues are (1) whether petitioners owned more than 80 percent in value of the 'outstanding stock of Trotz Construction, Inc., within the meaning of section 1239 1 at the time they sold construction equipment to the corporation, and (2) whether petitioners are entitled to the depreciation deductions claimed in 1958…
2Cases cited4 opinions
- Calvin D. Mitchell and Fay Bond Mitchell v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1962
- Macabe Co. v. CommissionerUnited States Tax Court · 1964
- Mitchell v. CommissionerUnited States Tax Court · 1960
- Smith Leasing Co. v. CommissionerUnited States Tax Court · 1964
3Cited by16 opinions
- Yamamoto v. CommissionerUnited States Tax Court · 1980
- Harry Trotz and Camille Trotz v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1966
- Nichols v. CommissionerUnited States Tax Court · 1964
- Hudlow v. CommissionerUnited States Tax Court · 1971
- Pilgrim's Pride Corp. v. Comm'rUnited States Tax Court · 2013
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