Cerone v. Commissioner
United States Tax Court
P and his son were each 50 percent shareholders in C. Because of hostility between father and son, C redeemed all of P's stock therein. After the redemption, P continued to work as an employee of C for several years, but he retained no control over, and was not involved in the management of, the corporation after the redemption.
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P and his son were each 50 percent shareholders in C. Because of hostility between father and son, C redeemed all of P's stock therein. After the redemption, P continued to work as an employee of C for several years, but he retained no control over, and was not involved in the management of, the corporation after the redemption. Held, family hostility does not nullify the family attribution rules of sec. 318(a)(1), I.R.C. 1954, in determining whether the redemption satisfies the dividend equivalency test of sec. 302(b)(1), I.R.C. 1954, or the complete redemption test of sec. 302(b)(3), I.R.C.…
1Opinion of the Court
PARKER, Judge:
In these consolidated cases, respondent determined deficiencies in petitioners’ Federal income taxes as follows:
Docket No. Petitioner(s) Taxable year(s) ending Deficiency
1683-80 Michael N. Cerone and Helen E. Cerone Dec. 31, 1974 Dec. 31, 1976 $12,742.00 2,436.00
1684-80 Stockade Cafe, Inc. Sept. 30, 1975 Sept. 30, 1976 2,595.36 2,711.47
28696-81 Michael N. Cerone and Helen E. Cerone Dec. 31, 1975 9,502.00
27979-82 Michael N. Cerone and Helen E. Cerone Dec. 31, 1977 Dec. 31, 1978 Dec. 31, 1979 2,726.00 2,934.00 3,195.00
After concessions,1 the issues for decision are as follows:(1)…
2Cases cited29 opinions
- United States v. CalamaroSupreme Court of the United States · 1957
- United States v. DavisSupreme Court of the United States · 1970
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Blanche S. Benjamin v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1979
- Haft Trust v. CommissionerUnited States Tax Court · 1974
24 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Estate of Schneider v. CommissionerUnited States Tax Court · 1987
- Gunther v. CommissionerUnited States Tax Court · 1989
- Ron Lykins, Inc. v. Comm'rUnited States Tax Court · 2009
- Warbus v. CommissionerUnited States Tax Court · 1998
- Paoli v. CommissionerUnited States Tax Court · 1991
12 more not listed; retrieve them via the Exa API.