Spheeris v. Commissioner
United States Tax Court
The S corporation had been engaged in the business of owning and operating commercial rental properties since 1945. In February 1960, one of its properties was destroyed by fire. Thereafter, various activities were engaged in on behalf of S corporation directed toward returning such property to income-producing status.
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The S corporation had been engaged in the business of owning and operating commercial rental properties since 1945. In February 1960, one of its properties was destroyed by fire. Thereafter, various activities were engaged in on behalf of S corporation directed toward returning such property to income-producing status. Because of a disagreement among the shareholders with regard to how such property should be rehabilitated, the property was transferred to A corporation whose stock was distributed to petitioner and another in exchange for their stock of S corporation. Thereafter, activities…
1Opinion of the Court
OPINION
The primary question presented is whether the exchange by the petitioner of his stock of the company for stock of Anmarcon constituted a nontaxable exchange under section 355 of the Internal Revenue Code of 1954.2
The respondent does not question that the transaction meets all the requirements of section 355, except the requirement that immediately after the distribution each corporation be engaged in the active conduct of a trade or business which has been actively conducted throughout the 5-year period ending on the date of the distribution. He further concedes that the company had…
2Cases cited4 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. GordonSupreme Court of the United States · 1968
- Coady v. CommissionerUnited States Tax Court · 1960
- United States v. W. W. Marett and Ruth MarettCourt of Appeals for the Fifth Circuit · 1963
3Cited by4 opinions
- King v. CommissionerUnited States Tax Court · 1971
- Andrew M. Spheeris and Ismene Spheeris v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1972
- King v. CommissionerUnited States Tax Court · 1971
- Spheeris v. CommissionerUnited States Tax Court · 1970