Messing v. Commissioner
United States Tax Court
Petitioners made gifts of shares of stock representing a minority interest in a closely held corporation in September 1961, at which time the stock was not publicly traded. Petitioners valued the gifted shares at $ 10 per share, based principally on sales to third parties at the same price in the summer of 1961. In January 1962, the stock of the corporation was offered to the public at $ 36.66 per share.
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Petitioners made gifts of shares of stock representing a minority interest in a closely held corporation in September 1961, at which time the stock was not publicly traded. Petitioners valued the gifted shares at $ 10 per share, based principally on sales to third parties at the same price in the summer of 1961. In January 1962, the stock of the corporation was offered to the public at $ 36.66 per share. Respondent valued the gifted shares at $ 30 per share, using the public offering price as a starting point and applying certain discount factors. On that basis, respondent also claimed, in an…
1Opinion of the Court
TaNNENWAld, Judge:
Respondent determined gift tax deficiencies for 1961 in Ithe amounts of $125,029.47 and $56,435.30, respectively, for Morris M. Messing (hereinafter referred to as petitioner) in docket No. 5865-65 and Helen F. Messing, deceased, in docket No. 6295-65.
After concessions made by petitioners, there remain for our decision the following issues:(1) What was the value of 26,400 shares of common stock of Sel-Rex Corp. gifted by petitioner on September 13, and 16,1961 ?(2) Did petitioner make a taxable gift under section 2512 (b)1 to his son Robert on September 13, 1961, when he…
2Cases cited19 opinions
- Estate of Cora R. Fitts, Deceased, J. Russel Fitts and Frank E. Tyler, Co-Executors v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1956
- Commissioner of Internal Revenue v. MarshallCourt of Appeals for the Second Circuit · 1942
- Jacoby v. . JacobyNew York Court of Appeals · 1907
- Herr v. CommissionerUnited States Tax Court · 1961
- Commissioner of Internal Revenue v. Arlean I. Herr, in No. 13,811, and Robert F. Herr, in No. 13,812Court of Appeals for the Third Circuit · 1962
14 more not listed; retrieve them via the Exa API.
3Cited by181 opinions
- Buffalo Tool & Die Mfg. Co. v. CommissionerUnited States Tax Court · 1980
- Estate of Newhouse v. CommissionerUnited States Tax Court · 1990
- Estate of Andrews v. CommissionerUnited States Tax Court · 1982
- Estate of Hall v. CommissionerUnited States Tax Court · 1989
- Estate of Gilford v. CommissionerUnited States Tax Court · 1987
176 more not listed; retrieve them via the Exa API.