Hurst v. Comm'r
United States Tax Court
In 1997, as part of their retirement planning, Ps sold their stock in R Corp. to H Corp. H Corp. redeemed 90 percent of P- husband's stock in H Corp., and P-husband sold the remainder to his son and two third parties. Both the redemption and stock sales provided for payment over 15 years and were secured by the shares of stock being redeemed or sold.
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In 1997, as part of their retirement planning, Ps sold their stock in R Corp. to H Corp. H Corp. redeemed 90 percent of P- husband's stock in H Corp., and P-husband sold the remainder to his son and two third parties. Both the redemption and stock sales provided for payment over 15 years and were secured by the shares of stock being redeemed or sold. Ps continued to own H Corp.'s headquarters building, which they leased back to H Corp. P-wife continued to be an employee of H Corp. after the redemption, and she and her husband continued to receive medical insurance through her employment. All…
1Opinion of the Court
Holmes, Judge:
Richard Hurst founded and owned Hurst Mechanical, Inc. (HMI), a thriving small business in Michigan that repairs and maintains heating, ventilating, and air conditioning (HVAC) systems. He bought, with his wife Mary Ann, a much smaller HVAC company called RHl; and together they also own the building where hmi has its headquarters.
When the Hursts decided to retire in 1997, they sold RHl to hmi, sold HMI to a trio of new owners who included their son, and remained HMi’s landlord. Mary Ann Hurst stayed on as an hmi employee at a modest salary and with such fringe benefits as health…
2Cases cited18 opinions
- Dunn v. CommissionerUnited States Tax Court · 1978
- Herbert A. Dunn and Georgia E. Dunn v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Shea v. CommissionerUnited States Tax Court · 1999
- United States v. DavisSupreme Court of the United States · 1970
- Estate of Emerson v. CommissionerUnited States Tax Court · 1977
13 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Carlebach v. CommissionerUnited States Tax Court · 2012
- H.J. Heinz Co. & Subsidiaries v. United StatesUnited States Court of Federal Claims · 2007
- David B. Greenberg v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 2021
- Powell v. Comm'rUnited States Tax Court · 2014
- Daoud v. Comm'rUnited States Tax Court · 2010
3 more not listed; retrieve them via the Exa API.