Falk v. Commissioner
United States Tax Court
During 1949 petitioners transferred all of their stock in Warwick Center Corporation to Warwick Gardens #2, Inc., in exchange for cash and negotiable interest-bearing promissory notes due in 1 year. At the time of the exchange petitioners owned all the stock in both corporations in disproportionate amounts. The notes were paid in 1950 with interest.
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During 1949 petitioners transferred all of their stock in Warwick Center Corporation to Warwick Gardens #2, Inc., in exchange for cash and negotiable interest-bearing promissory notes due in 1 year. At the time of the exchange petitioners owned all the stock in both corporations in disproportionate amounts. The notes were paid in 1950 with interest. After the transfer, Warwick Gardens #2, Inc., liquidated Warwick Center Corporation and on a parcel of land received in liquidation it constructed in 1949 apartment houses financed under section 608 of the National Housing Act. Petitioners Brout…
1Opinion of the Court
Arundell, Judge:
Respondent determined deficiencies in income tax for the calendar years 1950 and 1951 as follows:
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The only remaining issue relates to the year 1950 and is whether certain income reported by petitioners in that year as long-term capital gain should be taxed as ordinary income under section 117 (m) (1), I.R.C. 1939. However, in connection with this issue, petitioners Emanuel E. and Jean B. Falk and A. L. and Loraine B. Drueker have amended their petitions, alleging that the gain reported by them in 1950 was realized in 1949 and is therefore not taxable in 1950; and…
2Cases cited4 opinions
- Sidney v. CommissionerUnited States Tax Court · 1958
- Wolfson v. ReineckeCourt of Appeals for the Seventh Circuit · 1934
- Arthur P. And Teresa Pomponio, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1961
- Pomponio v. CommissionerUnited States Tax Court · 1960
3Cited by2 opinions
- Estate of Alper v. CommissionerUnited States Tax Court · 1961
- Falk v. CommissionerUnited States Tax Court · 1961