Legal Opinion

Role v. Commissioner

United States Tax Court

Decided May 25, 1978No. Docket Nos. 8577-76, 9087-76PublishedCited by 6 opinions

In 1967, petitioners acquired most of the stock of Keystone which qualified as "section 1244 stock" under sec. 1244, I.R.C. 1954. In 1969, Keystone reincorporated in Delaware and changed its name to KBSI.

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In 1967, petitioners acquired most of the stock of Keystone which qualified as "section 1244 stock" under sec. 1244, I.R.C. 1954. In 1969, Keystone reincorporated in Delaware and changed its name to KBSI. In 1971, KBSI merged into Micro-Scan, a small publicly held New York corporation, and the surviving corporation was renamed KMS (N.Y.). Shortly thereafter, KMS (N.Y.) was reincorporated in Delaware and merged into a newly created shell corporation, KMS (Del.). In 1973, KMS (Del.) was adjudicated bankrupt. Held: The KMS (N.Y.) stock received by petitioners pursuant to the merger of KBSI into…

1Opinion of the Court

Featherston, Jvdge:

Respondent determined the following deficiencies in petitioners’ Federal income taxes:

Year Docket No. Petitioner(s) Deficiency

1973 8577-76 Theodore and Josephine V. Role $7,065

9087-76 Robert J. and Adele M. Swartz 7,495 CO tr-r-H

9087-76 Robert J. Swartz . 1,201 © t> rH

The sole issue for decision in these consolidated cases is whether petitioners are entitled to ordinary loss treatment pursuant to section 12441 for losses sustained on their stockhold-ings in a corporation which was adjudicated bankrupt in 1973.

FINDINGS OF FACT

Petitioners Theodore and Josephine V. Role,…

2Cases cited16 opinions

  1. Koshland v. HelveringSupreme Court of the United States · 1936
  2. Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
  3. Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
  4. Bazley v. CommissionerSupreme Court of the United States · 1947
  5. J. E. Davant and Kathryn Davant v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. J. E. Davant and Kathryn DavantCourt of Appeals for the Fifth Circuit · 1966

11 more not listed; retrieve them via the Exa API.

3Cited by6 opinions

  1. Benak v. CommissionerUnited States Tax Court · 1981
  2. Sherwood Properties v. CommissionerUnited States Tax Court · 1987
  3. Muething v. Franchise Tax BoardCalifornia Court of Appeal · 1997
  4. Benak v. CommissionerUnited States Tax Court · 1981
  5. Role v. CommissionerUnited States Tax Court · 1978

1 more not listed; retrieve them via the Exa API.

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