Rosenberg v. Commissioner
United States Tax Court
Petitioners, shareholders in a closely held family corporation, received as a result of a recapitalization class B first preferred shares, second preferred shares, and new common shares in exchange for their old common shares, the only class of stock formerly outstanding. The class B first preferred was convertible on a share-for-share basis into class A first preferred which contained a mandatory redemption provision.
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Petitioners, shareholders in a closely held family corporation, received as a result of a recapitalization class B first preferred shares, second preferred shares, and new common shares in exchange for their old common shares, the only class of stock formerly outstanding. The class B first preferred was convertible on a share-for-share basis into class A first preferred which contained a mandatory redemption provision. Immediately following the recapitalization, petitioners commenced negotiations to sell the class B first preferred shares to large corporate investors. The shares were…
1Opinion of the Court
Tietjens, Judge:
The Commissioner determined deficiencies in income tax for 1952 as follows:
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The sole issue presented is whether under the circumstances here present, the proceeds realized from the sale of preferred stock in 1952 resulted in capital gain or ordinary income.
FINDINGS OF FACT.
Some of the facts have been stipulated and are incorporated herein by reference.
Henry A. Rosenberg and Ruth B. Rosenberg, Alvin Thalheimer and Fanny B. Thalheimer, and Jacob Blaustein and Hilda K. Blaustein were, respectively, husband and wife in the year 1952 and each couple filed a joint…
2Cases cited14 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. TowerSupreme Court of the United States · 1946
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
9 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Malkan v. Comm'rUnited States Tax Court · 1970
- Bialo v. CommissionerUnited States Tax Court · 1987
- Luke v. CommissionerUnited States Tax Court · 1964
- Christie Coal & Coke Co. v. CommissionerUnited States Tax Court · 1969
- Phelon v. CommissionerUnited States Tax Court · 1966
4 more not listed; retrieve them via the Exa API.