Kobacker v. Commissioner
United States Tax Court
1. Petitioner Arthur J. Kobacker entered into a contract with the Reiner family to purchase all the outstanding capital stock of Reiner's, Inc., a department store, for an aggregate price of $ 475,000. The Reiner family was unwilling to accept any portion of the desired price in the form of the redemption of their stock by Reiner's, Inc. Since Arthur could raise only $ 125,000, and was unwilling to personally borrow the remainder, he arranged for the incorporation of Alfred…
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1. Petitioner Arthur J. Kobacker entered into a contract with the Reiner family to purchase all the outstanding capital stock of Reiner's, Inc., a department store, for an aggregate price of $ 475,000. The Reiner family was unwilling to accept any portion of the desired price in the form of the redemption of their stock by Reiner's, Inc. Since Arthur could raise only $ 125,000, and was unwilling to personally borrow the remainder, he arranged for the incorporation of Alfred Investment Company to which he, his wife, and brother and a trust for the benefit of his daughter advanced $ 175,000 in…
1Opinion of the Court
Beuce, Judge:
Respondent determined deficiencies in Federal income taxes of tbe petitioners as follows:
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Certain issues were settled by stipulation of the parties. The remaining issues are: (1) Whether petitioners constructively received income in 1955 in the amount of $90,000 (allocated in proportion to their respective shareholdings in Eeiner’s), arising from payment of such amount by Eeiner’s, Inc., to Jerome M. Kobacker, and alternatively, whether the petitioner Arthur J. Kobacker and his wife constructively received income in the amount of $90,000 arising from such payment;…
2Cases cited19 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. LoBueSupreme Court of the United States · 1956
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
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3Cited by39 opinions
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Smith v. CommissionerUnited States Tax Court · 1978
- James J. Ritter v. The United StatesUnited States Court of Claims · 1968
- Plantation Patterns, Inc. v. CommissionerUnited States Tax Court · 1970
- Bennett v. CommissionerUnited States Tax Court · 1972
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