Weaver v. Commissioner
United States Tax Court
Petitioners negotiated a tentative agreement for the sale of the nonliquid assets in their wholly owned company and planned to liquidate the company under sec. 337, I.R.C. 1954, after the sale. Before completing the sale, petitioners created trusts for the benefit of their children to which they sold their company stock under an installment sales agreement. The trusts subsequently authorized the sale of the nonliquid assets and the liquidation of the company.
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Petitioners negotiated a tentative agreement for the sale of the nonliquid assets in their wholly owned company and planned to liquidate the company under sec. 337, I.R.C. 1954, after the sale. Before completing the sale, petitioners created trusts for the benefit of their children to which they sold their company stock under an installment sales agreement. The trusts subsequently authorized the sale of the nonliquid assets and the liquidation of the company. Held: Petitioners did not actually or constructively receive the liquidation proceeds in the year of the sale. The sales of the stock…
1Opinion of the Court
Dawson, Judge:
Respondent determined deficiencies in the Federal income tax of petitioners for the taxable year 1971 as follows:
Docket No. Deficiency
5032-77 . $291,799.81
5035-77 . 288,608.93
The sole issue for our decision is whether petitioners in these consolidated cases are entitled to utilize the installment method under section 4531 for reporting the gain on the sale of their stock in Columbia Match Co. to irrevocable trusts created for the benefit of their children.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. The stipulation of facts and the exhibits…
2Cases cited14 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Rushing v. CommissionerUnited States Tax Court · 1969
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
9 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- United States v. Hugh Reed, Jay D. Hatton, Kerry M. Martin, Thomas C. Lawson, and Charles M. TerrellCourt of Appeals for the Sixth Circuit · 1981
- Gordon v. CommissionerUnited States Tax Court · 1985
- Goodman v. CommissionerUnited States Tax Court · 1980
- Bowen v. CommissionerUnited States Tax Court · 1982
- Paul G. Lustgarten and Jacqueline Lustgarten v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
10 more not listed; retrieve them via the Exa API.