Cary v. Commissioner
United States Tax Court
Petitioner owned 145 shares of the common stock of a corporation, such shares having a basis in her hands, as well as a fair market value, of $ 206,625. The remaining 5 outstanding shares of the corporation were owned by petitioner's son.
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Petitioner owned 145 shares of the common stock of a corporation, such shares having a basis in her hands, as well as a fair market value, of $ 206,625. The remaining 5 outstanding shares of the corporation were owned by petitioner's son. On December 13, 1957, after having severed her relationship as an officer and director, all of petitioner's shares in the corporation were redeemed for a price of $ 206,625. Petitioner reported the redemption on her 1957 return as a sale of stock at basis, resulting in no gain or loss. Through inadvertence, however, she did not attach to this return the…
1Opinion of the Court
OPINION
The tax treatment to be accorded distributions in redemption of stock made after December 31,1954, is controlled by section 302 of the Internal Revenue Code of 1954. That section provides that such distributions are to be treated as in part or full payment in exchange for the stock redeemed where the redemption, pursuant to which the distribution was made, qualifies as an exchange under paragraphs (1), (2), (3), or (4) of section 302(b). It is petitioner’s position that the redemption of December 13, 1957, does so qualify under the provisions of paragraph (3) of section 302(b).
Section…
2Cases cited4 opinions
- United States v. G. W. Van Keppel and Elizabeth Van KeppelCourt of Appeals for the Tenth Circuit · 1963
- Mabel Elevator Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Van Keppel v. United StatesDistrict Court, D. Kansas · 1962
- Archbold v. United StatesDistrict Court, D. New Jersey · 1962
3Cited by65 opinions
- Bond v. CommissionerUnited States Tax Court · 1993
- Taylor v. CommissionerUnited States Tax Court · 1977
- Sperapani v. CommissionerUnited States Tax Court · 1964
- Haft Trust v. CommissionerUnited States Tax Court · 1974
- Columbia Iron & Metal Co. v. CommissionerUnited States Tax Court · 1973
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