Gunther v. Commissioner
United States Tax Court
Petitioners controlled corporations C and B. Petitioners transferred to C all of their B stock and received in return securities (11-year debentures) and C stock. Held, sec. 351, I.R.C. 1954, operates to preclude application of sec. 301 dividend treatment; under sec. 351(a), petitioners' gains on the transactions are not recognized. Haserot v. Commissioner, 41 T.C. 562 (1964), and 46 T.C. 864 (1966), affd. sub nom.
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Petitioners controlled corporations C and B. Petitioners transferred to C all of their B stock and received in return securities (11-year debentures) and C stock. Held, sec. 351, I.R.C. 1954, operates to preclude application of sec. 301 dividend treatment; under sec. 351(a), petitioners' gains on the transactions are not recognized. Haserot v. Commissioner, 41 T.C. 562 (1964), and 46 T.C. 864 (1966), affd. sub nom. Commissioner v. Stickney, 399 F.2d 828 (6th Cir. 1968), followed.
1Opinion of the Court
CHABOT, Judge:*
Respondent determined deficiencies in Federal individual income tax against petitioners for 1981 as follows:
Petitioners Deficiency
H. Dale Gunther and Marie M. Gunther. $185,019
Gene W. Gunther and Lois H. Gunther. 185,353
James L. Bjorkman and Penelope A. Bjorkman. 1,200
Peter C. Gunther and Mary Lou Gunther. 1,372
Donald S. Robinson and Pamela G. Robinson. 1,609
Prudence G. Hillier. 651
Gary B. Gunther. 4,479
After concessions by respondent,1 the issue for decision is whether an exchange of stock held by petitioners in Galesburg Builders Supply Co. (hereinafter sometimes referred to…
2Cases cited24 opinions
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- Watt v. AlaskaSupreme Court of the United States · 1981
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- Pallottini v. CommissionerUnited States Tax Court · 1988
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3Cited by21 opinions
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