Stiefel v. Commissioner
United States Tax Court
Petitioner and his wife acquired all of the capital stock of a corporation which owned and operated a mercantile business. Stock certificates were written, but not executed, which indicated that if they had been executed as written petitioner owned 99 per cent and his wife 1 per cent of the stock. The stock was purchased with funds contributed in substantial amounts by each of the spouses under an agreement between them that each should own one-half thereof.
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Petitioner and his wife acquired all of the capital stock of a corporation which owned and operated a mercantile business. Stock certificates were written, but not executed, which indicated that if they had been executed as written petitioner owned 99 per cent and his wife 1 per cent of the stock. The stock was purchased with funds contributed in substantial amounts by each of the spouses under an agreement between them that each should own one-half thereof. The spouses each rendered full time and valuable services in the operation of the corporation's business. The corporation was later…
1Opinion of the Court
OPINION.
Hill, Judge:
The question is the extent of petitioner’s interest in the company and the succeeding partnership for income tax purposes. The extent of his interest determines the amount of capital gain on liquidation of the company and the amount of income from the partnership on which he is taxable. Respondent contends that petitioner had a 99 per cent interest in the company and has a similar interest in the partnership. Petitioner contends that he owned one-half of the corporation and owns a one-half interest in the partnership. We agree with petitioner.
Respondent’s position is based…
2Cases cited1 opinion
- Canfield v. CommissionerUnited States Tax Court · 1946
3Cited by3 opinions
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Stiefel v. CommissionerUnited States Tax Court · 1947