Hitchon v. Commissioner
United States Tax Court
In a family corporation the father owned 1,509 shares of stock, and each of his three sons owned 1 share. The father transferred without consideration 1,508 of his 1,509 shares to the corporation, which were then held as treasury stock.
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In a family corporation the father owned 1,509 shares of stock, and each of his three sons owned 1 share. The father transferred without consideration 1,508 of his 1,509 shares to the corporation, which were then held as treasury stock. Held, that such transfer to the corporation constituted a gift by the father of a portion of his interest to each of his sons, decreasing his own interest to a one-fourth interest and increasing each son's interest to a one-fourth interest; and that under section 1015 of the Internal Revenue Code of 1954, the basis of the interest of each of the sons, for the…
1Opinion of the Court
OPINION
Atkins, Judge:
The respondent determined a deficiency of $10,002.-91 in income taxes against Herbert M. Hitchon and the Estate of Julie B. Hitchon for the taxable year 1960, and a deficiency of $9,470.93 for the same year against Lucile B. Hitchon and the Estate of Walter G. Hitchon. The issue for decision is whether the transfer without consideration to a family corporation by one member of a family of his shares of stock in such corporation constituted a gift to the other members of the family who were stockholders, thereby increasing the basis of their stock in the family corporation…
2Cases cited2 opinions
- Helvering v. HutchingsSupreme Court of the United States · 1941
- Diebold v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1952
3Cited by13 opinions
- Shepherd v. CommissionerUnited States Tax Court · 2000
- CTUW Hollingsworth v. CommissionerUnited States Tax Court · 1986
- Estate of Trenchard v. CommissionerUnited States Tax Court · 1995
- Tilton v. CommissionerUnited States Tax Court · 1987
- Caracci v. Comm'rUnited States Tax Court · 2002
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