Paulsen v. Commissioner
United States Tax Court
In 1976, petitioners exchanged "guaranty stock" in a State-chartered savings and loan association for savings accounts in a federally chartered mutual (nonstock) savings and loan association pursuant to a plan for the merger of the two associations. The savings accounts carry with them certain proprietary rights such as the right to vote, the right to pro rata distributions of earnings, and the right to share in the distribution of assets upon liquidation.
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In 1976, petitioners exchanged "guaranty stock" in a State-chartered savings and loan association for savings accounts in a federally chartered mutual (nonstock) savings and loan association pursuant to a plan for the merger of the two associations. The savings accounts carry with them certain proprietary rights such as the right to vote, the right to pro rata distributions of earnings, and the right to share in the distribution of assets upon liquidation. Held, the savings accounts constitute proprietary interests which satisfy the "continuity of interest" required in a reorganization under…
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined a deficiency in the amount of $40,913 in petitioners’ Federal income tax for 1976. The only issue for decision is whether the exchange of "guaranty stock” in a State-chartered savings and loan association for passbook accounts and time certificates of deposit in a federally chartered mutual savings and loan association qualifies as a tax-free exchange under section 354(a).1
This case was submitted fully stipulated.
At the time the petition was filed, petitioners Harold T. and Marie B. Paulsen, husband and wife at all times material herein, resided…
2Cases cited13 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- LeTulle v. ScofieldSupreme Court of the United States · 1940
- Helvering v. Minnesota Tea Co.Supreme Court of the United States · 1935
- United States v. ByrumSupreme Court of the United States · 1972
- June M. Carlberg, by Vida M. Frick, Guardian v. United StatesCourt of Appeals for the Eighth Circuit · 1960
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3Cited by9 opinions
- Paulsen v. CommissionerSupreme Court of the United States · 1985
- Harbinger Capital Partners Master Fund I, Ltd. v. Granite Broadcasting Corp.Court of Chancery of Delaware · 2006
- Harold T. And Marie T. Paulsen v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Estate of Silverman v. CommissionerUnited States Tax Court · 1992
- Estate of Silverman v. CommissionerUnited States Tax Court · 1992
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