Kingsley v. Commissioner
United States Tax Court
Petitioner entered into a stock-for-stock tax-free reorganization agreement with A in 1966. Most of the shares of A's common stock petitioner was to receive were delivered to him at closing. The balance was reserved to meet contingent claims and delivered to petitioner in April 1970, 3 years and 5 months later. The number of shares of stock delivered in 1970 was adjusted to reflect both a stock split and interim dividends that would have been paid on the reserved shares.
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Petitioner entered into a stock-for-stock tax-free reorganization agreement with A in 1966. Most of the shares of A's common stock petitioner was to receive were delivered to him at closing. The balance was reserved to meet contingent claims and delivered to petitioner in April 1970, 3 years and 5 months later. The number of shares of stock delivered in 1970 was adjusted to reflect both a stock split and interim dividends that would have been paid on the reserved shares. The time of the later delivery was indefinite under the agreement, being the latter of 3 years after closing or the final…
1Opinion of the Court
Fay, Judge:
Respondent determined a deficiency of $36,306 in petitioners’ 1970 Federal income tax. The principal issue presented is whether certain shares of stock delivered to petitioner Jerrold L. Kingsley in connection with a tax-free reorganization are subject to the imputed interest rules of section 483.1 If section 483 is applicable, we must then decide how those shares are to be valued.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
At the time they filed their petition in this case, petitioners, Jerrold L. Kingsley and his wife June Kingsley, resided in San…
2Cases cited16 opinions
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Muzak Corp. v. Hotel Taft Corp.New York Court of Appeals · 1956
- In Re the Arbitration Between Western Union Telegraph Co. & American Communications Ass'nNew York Court of Appeals · 1949
- Farago v. BurkeNew York Court of Appeals · 1933
- Higgs v. De MaziroffNew York Court of Appeals · 1934
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3Cited by3 opinions
- Jerrold L. Kingsley and June H. Kingsley v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Adair v. CommissionerUnited States Tax Court · 1985
- Kingsley v. CommissionerUnited States Tax Court · 1979