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
Estate of Marcellus L. Joslyn, Robert D. MacDonald, Executor, Petitioner v. Commissioner of Internal Revenue, Respondent
Estate of Joslyn v. Commissioner
Docket No. 5591-67
United States Tax Court
63 T.C. 478; 1975 U.S. Tax Ct. LEXIS 200;
January 28, 1975, Filed
Decision will be entered under Rule 155.
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…
2Cases cited14 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
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