Blatt v. Commissioner
United States Tax Court
X corporation, owned by H and W, redeemed all W's stock in exchange for cash. The redemption was pursuant to a divorce decree pertaining to H and W. Held: W's transfer of her stock by way of redemption was not a transfer to a third party on behalf of H under sec. 1.1041-1T, Q&A 9, Temporary Income Tax Regs., 49 Fed. Reg. 34453 (Aug. 31, 1984). Accordingly, X's payment to W in redemption of her stock was taxable to her in the year of redemption.
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X corporation, owned by H and W, redeemed all W's stock in exchange for cash. The redemption was pursuant to a divorce decree pertaining to H and W. Held: W's transfer of her stock by way of redemption was not a transfer to a third party on behalf of H under sec. 1.1041-1T, Q&A 9, Temporary Income Tax Regs., 49 Fed. Reg. 34453 (Aug. 31, 1984). Accordingly, X's payment to W in redemption of her stock was taxable to her in the year of redemption. Arnes v. United States, 981 F.2d 456 (9th Cir. 1992), not followed.
1Opinion of the Court
Laro, Judge:
This case is before the Court pursuant to a petition filed by Gloria T. Blatt (petitioner) for a redeter-mination of respondent’s determination of a deficiency of $96,787 in petitioner’s 1987 Federal income tax.1 The sole issue for decision is whether a payment made to petitioner in redemption of all her stock is taxable to her in 1987, the year of redemption, or is nontaxable to her under section 1041.2 The redemption was made by a corporation owned equally by petitioner and her former husband, Frank J. Blatt (Blatt), and was made pursuant to a court decree entered incident to…
2Cases cited9 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Enoch v. CommissionerUnited States Tax Court · 1972
- United States v. DavisSupreme Court of the United States · 1962
4 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Marsha Hatch Ingham v. United StatesCourt of Appeals for the Ninth Circuit · 1999
- Fisher v. FisherNorth Dakota Supreme Court · 1997
- Berger v. CommissionerUnited States Tax Court · 1996
- Arnes v. CommissionerUnited States Tax Court · 1994
- Read v. CommissionerUnited States Tax Court · 2000
17 more not listed; retrieve them via the Exa API.