Coady v. Commissioner
United States Tax Court
For more than 5 years prior to November 15, 1954, the Christopher Company was engaged in the active conduct of a construction business. Its stock was held 50 per cent by M. Christopher, and 50 per cent by petitioner. Differences arose between the two stockholders, and they agreed to divide the business.
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For more than 5 years prior to November 15, 1954, the Christopher Company was engaged in the active conduct of a construction business. Its stock was held 50 per cent by M. Christopher, and 50 per cent by petitioner. Differences arose between the two stockholders, and they agreed to divide the business. Accordingly, on November 15, 1954, the Christopher Company organized the Coady Company to which it transferred one-half its business assets in exchange for all of Coady Company's stock. The Christopher Company then distributed all the Coady Company stock to petitioner in exchange for all of…
1Opinion of the Court
OPINION.
Tietjens, Judge:
This proceeding involves a deficiency in income tax for tbe taxable year 1954 in the amount of $16,875, and an addition thereto under section 294(d)(2) of the 1939 Code in the amount of $1,012.50.
The issue for decision is whether the transfer by the Christopher Construction Company of a portion of its assets to E. P. Coady and Co. in exchange for all of the Coady Company’s stock, and the subsequent distribution by the Christopher Company of such Coady stock to petitioner in exchange for his Christopher stock, constituted a distribution of stock qualifying for tax-free…
Also in this document: Dissent.
2Cases cited2 opinions
- Commissioner v. AckerSupreme Court of the United States · 1959
- Lykes v. United StatesSupreme Court of the United States · 1952
3Cited by53 opinions
- Minahan v. CommissionerUnited States Tax Court · 1987
- Estate of Boeshore v. CommissionerUnited States Tax Court · 1982
- Edgar S. Idol, Katherine G. Idol, and Speedway Transports, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Clair Smith v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1964
- Durbin Paper Stock Co. v. CommissionerUnited States Tax Court · 1983
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