Metzger Trust v. Commissioner
United States Tax Court
A brother and two sisters were shareholders in MDI and remaindermen in a trust which also held stock in MDI. Family hostility among the siblings caused MDI to redeem the stock owned by the trust and the two sisters. The trust was included in the redemption because under its terms, the stock it held in MDI would have passed to the remaindermen who were attempting to separate their business and family relations.
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A brother and two sisters were shareholders in MDI and remaindermen in a trust which also held stock in MDI. Family hostility among the siblings caused MDI to redeem the stock owned by the trust and the two sisters. The trust was included in the redemption because under its terms, the stock it held in MDI would have passed to the remaindermen who were attempting to separate their business and family relations. The trust complied with the prerequisites of sec. 302(c)(2)(A), I.R.C. 1954, and filed an agreement purporting to waive the trust-beneficiary attribution rules of sec. 318(a)(3). In…
1Opinion of the Court
OPINION
Dawson, Judge:
In these consolidated cases respondent determined the following deficiencies in the Federal income taxes of petitioners:
Petitioner Docket No. Year Amount
David Metzger Trust 88&D77 1973 $292,977.47
Metzger Dairies, Inc. 8856-77 1973 2,106.86
1974 24,856.38
Metzger Dairies, Inc. 6990-79 1975 6,684.68
Because of concessions, the remaining issues for decision are:(1) Whether family hostility among the shareholders of Metz-ger Dairies, Inc., who are also beneficiaries of the David Metzger Trust, nullifies the attribution rules of section 3181 so that a redemption by the…
Also in this document: Concurrence.
2Cases cited53 opinions
- Tennessee Valley Authority v. HillSupreme Court of the United States · 1978
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Mobil Oil Corp. v. HigginbothamSupreme Court of the United States · 1978
- United States v. CalamaroSupreme Court of the United States · 1957
- United States v. DavisSupreme Court of the United States · 1970
48 more not listed; retrieve them via the Exa API.
3Cited by62 opinions
- Estate of Ralph D. Cowser, Deceased, Patricia Ann Tucker v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1984
- Concord Consumers Hous. Coop. v. CommissionerUnited States Tax Court · 1987
- Estate of Cowser v. CommissionerUnited States Tax Court · 1983
- David Metzger Trust v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1982
- Amerco v. CommissionerUnited States Tax Court · 1991
57 more not listed; retrieve them via the Exa API.