Estate of Joslyn v. Commissioner
United States Tax Court
The estate incurred expenses in selling stock in a secondary offering. The stock was sold to a group of underwriters for $ 18.095 per share. The underwriters then sold the stock to the public for $ 19.25 per share. Held: Expenses incurred in making the sale are deductible. Sec. 2053, I.R.C. 1954. The deductibility of such expenses is not limited by the provisions of sec. 20.2053-3(d)(2), Estate Tax Regs., allowing a deduction for any loss on the sale of stock.
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The estate incurred expenses in selling stock in a secondary offering. The stock was sold to a group of underwriters for $ 18.095 per share. The underwriters then sold the stock to the public for $ 19.25 per share. Held: Expenses incurred in making the sale are deductible. Sec. 2053, I.R.C. 1954. The deductibility of such expenses is not limited by the provisions of sec. 20.2053-3(d)(2), Estate Tax Regs., allowing a deduction for any loss on the sale of stock. Held, further, the underwriters' profit on the sale is not a broker's expense deductible under sec. 2053(a)(2), I.R.C. 1954.
1Opinion of the Court
SUPPLEMENTAL FINDINGS OF FACT AND OPINION
Simpson, Judge:
This case is now before the Court on remand from the United States Court of Appeals for the Ninth Circuit. The case was originally heard by this Court and decided in favor of the Commissioner (57 T.C. 722 (1972)). Upon a petition for review, the Court of Appeals for the Ninth Circuit reversed our decision and remanded the case for further consideration in accordance with its opinion (500 F. 2d 382 (1974)).
The parties having jointly moved to reconsider this case on the basis of the evidence in the record and briefs previously filed, no…
2Cases cited13 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Demarco v. EdensCourt of Appeals for the Second Circuit · 1968
- Commissioner v. Estate of SternbergerSupreme Court of the United States · 1955
- Estate of Smith v. CommissionerUnited States Tax Court · 1972
- Blish v. Thompson Automatic Arms Corp.Supreme Court of Delaware · 1948
8 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Collins v. AugerCourt of Appeals for the Eighth Circuit · 1978
- Estate of Marcellus L. Joslyn, Deceased. Robert D. MacDonald v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1977
- Estate of Helen Baker Jenner, Deceased and Continental Illinois National Bank and Trust Company of Chicago v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1978
- Estate of Jenner v. CommissionerUnited States Tax Court · 1977
- Rifkind v. United StatesUnited States Court of Claims · 1984
1 more not listed; retrieve them via the Exa API.