Estate of Lennard v. Commissioner
United States Tax Court
All of decedent's one-third stock interest in a corporation was redeemed prior to his death. At the time of the redemption he resigned as a director and officer of the corporation. Through a recapitalization and purchase from the remaining shareholders, his son thereafter increased his percentage ownership to two-thirds of the outstanding stock.
Read the full summary
All of decedent's one-third stock interest in a corporation was redeemed prior to his death. At the time of the redemption he resigned as a director and officer of the corporation. Through a recapitalization and purchase from the remaining shareholders, his son thereafter increased his percentage ownership to two-thirds of the outstanding stock. The decedent continued to provide monthly accounting services to the corporation through an independent accounting firm in which he possessed a 48-percent partnership interest. Held: The decedent's interest in the corporation was completely terminated…
1Opinion of the Court
Goffe, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes for the years 1965 and 1966 in the respective amounts of $67,059.55 and $69,292.53. The issues for decision are (1) whether the redemption of all of Milton S. Lennard’s stock in Gerald Metals, Inc., constituted a complete termination of his interest in the corporation under sections 302(b) (3) and 302(c) (2) 1 when he continued to render accounting services to the corporation after the redemption, and (2) whether the redemption of the stock constituted a transaction which was essentially equivalent to a…
2Cases cited6 opinions
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Kraft Foods Company v. Commissioner of Internal Revenue, (Two Cases)Court of Appeals for the Second Circuit · 1956
- Beatrice Levin v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1967
- Lewis v. CommissionerUnited States Tax Court · 1966
- Levin v. CommissionerUnited States Tax Court · 1966
1 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Dunn v. CommissionerUnited States Tax Court · 1978
- Herbert A. Dunn and Georgia E. Dunn v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Cerone v. CommissionerUnited States Tax Court · 1986
- Chertkof v. CommissionerUnited States Tax Court · 1979
- Hurst v. Comm'rUnited States Tax Court · 2005
12 more not listed; retrieve them via the Exa API.