Rauenhorst v. Comm'r
United States Tax Court
Ps owned stock warrants in NMG. WCP sent a letter to NMG regarding its intention to purchase all the issued and outstanding stock of NMG. Ps then assigned their warrants to four charitable institutions. At the time of the assignments, the donees were under no legal obligation, and could not be compelled, to sell the warrants. The donees subsequently sold their warrants to WCP. R determined that the contributions by Ps were anticipatory assignments of income.
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Ps owned stock warrants in NMG. WCP sent a letter to NMG regarding its intention to purchase all the issued and outstanding stock of NMG. Ps then assigned their warrants to four charitable institutions. At the time of the assignments, the donees were under no legal obligation, and could not be compelled, to sell the warrants. The donees subsequently sold their warrants to WCP. R determined that the contributions by Ps were anticipatory assignments of income. Ps moved for partial summary judgment arguing that the anticipatory assignment of income doctrine does not apply where donees are not…
1Opinion of the Court
OPINION
Ruwe, Judge:
The matter is before us on petitioners’ motion for partial summary judgment pursuant to Rule 121.1 Respondent determined a deficiency of $1,322,295 in petitioners’ Federal income taxes, and an accuracy-related penalty of $264,459 pursuant to section 6662(a), for 1993. The issue for decision is whether the transfer of stock warrants to four charitable institutions was an anticipatory assignment of the proceeds from a sale of those warrants.
Background
At the time of filing the petition, petitioners resided in Naples, Florida. Petitioners were the only partners of Arbeit & Co.…
2Cases cited64 opinions
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- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
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