Estate of Applestein v. Commissioner
United States Tax Court
In late December, P received word of the proposed merger of corporation A into corporation B. P, a stockholder in both corporations, purchased large amounts of shares in corporation A. The merger was approved by the shareholders on Feb. 7, 1973, and shortly before its effective date, P transferred some of these shares in A to brokerage accounts for his two children. These shares were subsequently exchanged as per the merger agreement.
Read the full summary
In late December, P received word of the proposed merger of corporation A into corporation B. P, a stockholder in both corporations, purchased large amounts of shares in corporation A. The merger was approved by the shareholders on Feb. 7, 1973, and shortly before its effective date, P transferred some of these shares in A to brokerage accounts for his two children. These shares were subsequently exchanged as per the merger agreement. Held: P is taxable on the gain resulting from the merger exchange. The transfers to the children's accounts represented anticipatory assignments of income. P…
1Opinion of the Court
Wilbur, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for 1973 in the amount of $19,531.48.1 The issues presented for our determination are (1) whether petitioners are taxable on the gain reported by their two children from the exchange of National Realty stock transferred to them by petitioner Louis Applestein after the approval of a merger of National Realty Corp. with United National Corp. but shortly before its effective date, and (2) whether petitioners are taxable on income derived from certain securities trading by petitioner Louis Applestein in accounts…
2Cases cited33 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. EubankSupreme Court of the United States · 1941
28 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Rauenhorst v. Comm'rUnited States Tax Court · 2002
- Michael Ferguson, Valene Ferguson, Roger N. Ferguson and Sybil Ferguson v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1999
- Ferguson v. CommissionerUnited States Tax Court · 1997
- Peterson Irrevocable Trust 2 for benefit of Peterson v. CommissionerUnited States Tax Court · 1986
- Estate of Applestein v. CommissionerUnited States Tax Court · 1983
6 more not listed; retrieve them via the Exa API.