Appleby v. Commissioner
United States Tax Court
The petitioner, Theodore F. Appleby, and his father, prior to 1922, operated an insurance and real estate brokerage business at a certain location. In 1922 they acquired the property and erected the present 2-story building, renting to five tenants that portion of the building they did not use. In 1932 the business was incorporated under the name of T. Frank Appleby Agency, Inc., and petitioners have since been its only shareholders.
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The petitioner, Theodore F. Appleby, and his father, prior to 1922, operated an insurance and real estate brokerage business at a certain location. In 1922 they acquired the property and erected the present 2-story building, renting to five tenants that portion of the building they did not use. In 1932 the business was incorporated under the name of T. Frank Appleby Agency, Inc., and petitioners have since been its only shareholders. In 1947, the agency acquired title to the property and occupied space on both floors of the building and rented the other floorspace to tenants. By 1954 it was…
1Opinion of the Court
OPINION".
TURNER, Judge:
The only issue is whether the distribution by the agency of all the stock of its wholly owned subsidiary, the building corporation, to its stockholders, the petitioners, qualifies as a nontaxable distribution under section 355 of the Internal Revenue Code of 1954.1
Section 355(a), insofar as applicable here, provides that (1) if a corporation distributes to its shareholders with respect to their stock, solely stock of a corporation which it controlled immediately before the distribution,- (2) the transaction was not used principally as a device for distributing the…
2Cases cited5 opinions
- Hazard v. CommissionerUnited States Tax Court · 1946
- Coady v. CommissionerUnited States Tax Court · 1960
- Fackler v. CommissionerUnited States Board of Tax Appeals · 1941
- United States v. LeathersCourt of Appeals for the Second Circuit · 1943
- Elliott v. CommissionerUnited States Tax Court · 1959
3Cited by18 opinions
- Henry H. Bonsall, Jr., and Martha G. Bonsall, C. Jordan Vail and Nancy B. Vail v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1963
- Wilson v. CommissionerUnited States Tax Court · 1964
- W. E. Gabriel Fabrication Co. v. CommissionerUnited States Tax Court · 1964
- Clara D. Blaschka v. The United StatesUnited States Court of Claims · 1968
- Rafferty v. CommissionerUnited States Tax Court · 1970
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