Lawrence F. & Sara L. Peek v. Commissioner

140 T.C. No. 12

UNITED STATES TAX COURT LAWRENCE F. PEEK AND SARA L. PEEK, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent DARRELL G. FLECK AND KIMBERLY J. FLECK, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 5951-11, 6481-11. Filed May 9, 2013. In 2001 Ps established traditional IRAs. Ps formed FP Corp. and directed their new IRAs to use rolled-over cash to purchase 100% of FP Corp.’s newly issued stock. Ps used FP Corp. to acquire the assets of AFS Corp. Ps personally guaranteed loans of FP Corp. that arose out of the asset purchase. In 2003 and 2004 Ps…