Van Heusden v. Commissioner
United States Tax Court
Petitioners held an option to purchase a tract of real property. In anticipation of the resale of the tract they formed a corporation to which they assigned the option. The corporation then consummated the purchase and resale, following which the assets of the corporation were distributed in complete liquidation to petitioners.
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Petitioners held an option to purchase a tract of real property. In anticipation of the resale of the tract they formed a corporation to which they assigned the option. The corporation then consummated the purchase and resale, following which the assets of the corporation were distributed in complete liquidation to petitioners. Held, the nonrecognition treatment of section 337, I.R.C. 1954, is not available to petitioners because the corporation was collapsible, sec. 341, I.R.C. 1954. Sec. 337(c) (1) (A).
1Opinion of the Court
Train, Judge:
Respondent has asserted that petitioners are liable as transferees of West Cocoa Acres, Inc., for a deficiency in the latter’s 1958 income taxes in the amount of $65,668.01. Since petitioners have conceded that they are liable as transferees for any deficiency, the issue for our decision is whether there is any underlying deficiency. This depends upon whether or not West Cocoa Acres, Inc., was a collapsible corporation within the definition of section 341 of the 1954 Code1 so as to render inapplicable the nonrecognition provisions of section 337.
FINDINGS OP PACT
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2Cases cited12 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- MAULDIN v. COMMISSIONER OF INTERNAL REVENUE (Two Cases)Court of Appeals for the Tenth Circuit · 1952
- Phillips v. Comissioner of Internal RevenueUnited States Tax Court · 1955
- Braunstein v. CommissionerSupreme Court of the United States · 1963
7 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Estate of E. J. Van Heusden, Deceased Transferee v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Thomas v. CommissionerUnited States Tax Court · 1981
- Leisure Time Enterprises, Inc. v. CommissionerUnited States Tax Court · 1971
- Manassas Airport Industrial Park, Inc. v. CommissionerUnited States Tax Court · 1976
- Ginsburg v. CommissionerUnited States Tax Court · 1974
3 more not listed; retrieve them via the Exa API.