Estate of Miller v. Commissioner
United States Tax Court
Three equal partners determined to operate their business in corporate form. Pursuant to a prearranged plan they paid a nominal amount for all the stock, which was no par and of a nominal declared value, of a newly organized corporation, and thereafter transferred to it substantially all the operating assets of the partnership plus $ 50,000 in cash. The corporation issued notes purportedly in exchange for such assets and cash.
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Three equal partners determined to operate their business in corporate form. Pursuant to a prearranged plan they paid a nominal amount for all the stock, which was no par and of a nominal declared value, of a newly organized corporation, and thereafter transferred to it substantially all the operating assets of the partnership plus $ 50,000 in cash. The corporation issued notes purportedly in exchange for such assets and cash. Held, the sum representing the declared value of the stock was grossly inadequate to operate the business and the low stated value was a fiction; the risk capital…
1Opinion of the Court
Estate of Herbert B. Miller, Deceased, The United States National Bank of Portland (Oregon), Administrator, d. b. n., c. t. a., Petitioner, v. Commissioner of Internal Revenue, Respondent
Estate of Miller v. Commissioner
Docket Nos. 28582, 31063
United States Tax Court
24 T.C. 923; 1955 U.S. Tax Ct. LEXIS 114;
August 23, 1955, Filed
Decisions will be entered for the respondent.
Three equal partners determined to operate their business in corporate form. Pursuant to a prearranged plan they paid a nominal amount for all the stock, which was no par and of a nominal declared value, of a newly organized…
2Cases cited28 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Schnitzer v. CommissionerUnited States Tax Court · 1949
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