Estate of Scharf v. Commissioner
United States Tax Court
1. Amounts received from transfer of membership certificates in a not-for-profit charitable corporation are not long-term capital gains since such certificates are not property which was sold, the substance of the transaction being a distribution to the transferors of the membership certificates of assets of the charitable corporation. 2. The beneficial interest in a note received by two of petitioners was property with a fair market value of the face amount thereof and was…
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1. Amounts received from transfer of membership certificates in a not-for-profit charitable corporation are not long-term capital gains since such certificates are not property which was sold, the substance of the transaction being a distribution to the transferors of the membership certificates of assets of the charitable corporation. 2. The beneficial interest in a note received by two of petitioners was property with a fair market value of the face amount thereof and was a cash equivalent includible in the income of these petitioners in the year the note was received. 3. Addition to tax of…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ income tax and additions to tax for the year 1953 as follows:
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The issues for decision are:(1) Whether amounts received upon transfer of membership certificates in the Belmont Community Hospital Association constituted capital gains as reported by petitioners or ordinary income as determined by respondent.(2) As to the latter two petitioners, if the amounts received were capital gains, whether portions thereof were short-term capital gains.(3) As to the latter two petitioners, cash basis taxpayers, whether a 4-percent…
2Cases cited17 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Marc D. Leh and L. Waive Leh v. Commissioner of Internal Revenue, David E. Brown and Christobel H. Brown v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- C. D. Spangler and Veva C. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
12 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Achiro v. CommissionerUnited States Tax Court · 1981
- Estate of Emerson v. CommissionerUnited States Tax Court · 1977
- Leahy v. CommissionerUnited States Tax Court · 1986
- Sanderling, Inc. v. CommissionerUnited States Tax Court · 1976
- Kingsbury v. CommissionerUnited States Tax Court · 1976
38 more not listed; retrieve them via the Exa API.