Estate of Wein v. Commissioner
United States Tax Court
Decedent David Wein, a sole proprietor of a business, elected to have said business taxed as a domestic corporation under subchapter R, sec. 1361, I.R.C. 1954. He later incorporated the business under State law. Held, such action is directly covered by the various subsections of said sec. 1361, and results in gain or loss being recognized to petitioner.
1Opinion of the Court
OPINION
FORRESTER, Judge:
Respondent determined a deficiency of $31,-068.82 in income tax for the taxable year 1955. Petitioner has conceded a minor adjustment, and the parties have stipulated that the amount of the deduction allowable for drug and medical expenses is controlled by our resolution of the sole issue before us.
That issue is whether or not gain is recognized upon the actual incorporation of a sole proprietorship which had previously made a valid election to be taxed as a domestic corporation under section 1361 (a) of the Internal Revenue Code of 1954.1
All of the facts have been…
2Cited by12 opinions
- Sperapani v. CommissionerUnited States Tax Court · 1964
- Estate Of J. O. Willett, DeceasedCourt of Appeals for the Fifth Circuit · 1966
- Estate of Willett v. CommissionerCourt of Appeals for the Fifth Circuit · 1966
- Prescott v. CommissionerUnited States Tax Court · 1976
- Thomas P. Stanton and Wanda S. Stanton v. United StatesCourt of Appeals for the Third Circuit · 1975
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