Weisbart v. Commissioner
United States Tax Court
Petitioner owned 45 percent of S and 100 percent of W. Gary, petitioner's nephew, controlled 7AL and GW. W and GW each owned 50 percent of W & W. These corporations were all in cattle-related businesses. The stockholders of S, W, 7AL, and W & W decided to transfer their stock in these corporations to E in exchange for E stock in a sec. 351, I.R.C. 1954, 1All section references are to the Internal Revenue Code of 1954 as amended. transaction.
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Petitioner owned 45 percent of S and 100 percent of W. Gary, petitioner's nephew, controlled 7AL and GW. W and GW each owned 50 percent of W & W. These corporations were all in cattle-related businesses. The stockholders of S, W, 7AL, and W & W decided to transfer their stock in these corporations to E in exchange for E stock in a sec. 351, I.R.C. 1954, 1All section references are to the Internal Revenue Code of 1954 as amended. transaction. Beginning with book value as a basis for comparing their corporations, petitioner and Gary negotiated to determine the relative value of their…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined a deficiency in the petitioners’ Federal income tax for the taxable year ended August 31,1974, in the amount of $147,085.
The issue for decision is whether petitioner Irvin Weisbart received stock of Weisbart Enterprises, Inc., in excess of his proportionate share of property transferred to Weisbart Enterprises, Inc., pursuant to a section 351 exchange and, if so, whether he recognized taxable income as a result of this disproportionate receipt.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and exhibits are incorporated…
2Cases cited7 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
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