Crawford v. Commissioner
United States Tax Court
The stock of an orchard farm corporation was owned 85 percent by H's father, 5 percent by H, and 10 percent by his brothers. The mortgage on the orchard property was foreclosed by the bank. The property was purchased by the bank at the mortgage foreclosure sale and later sold to petitioners. Held: Under the attribution rules of sec. 267(c)(2), I.R.C. 1954, as limited by sec. 179(d)(2)(A), H owns both his and his father's stock.
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The stock of an orchard farm corporation was owned 85 percent by H's father, 5 percent by H, and 10 percent by his brothers. The mortgage on the orchard property was foreclosed by the bank. The property was purchased by the bank at the mortgage foreclosure sale and later sold to petitioners. Held: Under the attribution rules of sec. 267(c)(2), I.R.C. 1954, as limited by sec. 179(d)(2)(A), H owns both his and his father's stock. As a result an investment credit is disallowed for "used section 38 property" since a prohibited family relationship, as established by sec. 48(c)(1), was formed,…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined deficiencies in petitioners’ Federal income tax as follows:
Year Deficiency Year Deficiency
1968 .$2,730.66 1971 . $2,830.71
1969 . 214.22 1973 . 380.47
1970 . 167.96
Concessions have been made by petitioners. The only issue to be decided is whether an orchard farm purchased by petitioners qualifies for an investment credit.
This case was submitted for our decision under Rule 122, Tax Court Rules of Practice and Procedure. All of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by this…
2Cases cited2 opinions
- Thompson v. CommissionerUnited States Tax Court · 1967
- Don R. Thompson and Mildred Thompson v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1969
3Cited by4 opinions
- Bernard Jaske and Pauline Jaske v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Seventh Circuit · 1987
- Brown v. CommissionerUnited States Tax Court · 1982
- Crawford v. CommissionerUnited States Tax Court · 1978
- Jaske v. CommissionerUnited States Tax Court · 1986