Johnston v. Commissioner
United States Tax Court
An agreement made in 1973 between petitioner and a closely held family corporation obligated the corporation annually to redeem 40 of petitioner's shares. In each of the years 1976, 1977, and 1978, it redeemed 40 shares pursuant to the agreement; however, it made no redemptions in 1974, 1975, and 1979. Petitioner did not attempt to enforce the corporation's redemption obligation in the years when it failed to redeem her shares.
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An agreement made in 1973 between petitioner and a closely held family corporation obligated the corporation annually to redeem 40 of petitioner's shares. In each of the years 1976, 1977, and 1978, it redeemed 40 shares pursuant to the agreement; however, it made no redemptions in 1974, 1975, and 1979. Petitioner did not attempt to enforce the corporation's redemption obligation in the years when it failed to redeem her shares. Held, the 1976 redemption was not an integrated step in a firm and fixed plan to redeem petitioner's shares, and, consequently, the distribution in redemption of…
1Opinion of the Court
Mary Arnold Schoellkopf Johnston, Petitioner v. Commissioner of Internal Revenue, Respondent
Johnston v. Commissioner
Docket No. 17069-79
United States Tax Court
77 T.C. 679; 1981 U.S. Tax Ct. LEXIS 55;
September 24, 1981, Filed
Decision will be entered for the respondent.
An agreement made in 1973 between petitioner and a closely held family corporation obligated the corporation annually to redeem 40 of petitioner's shares. In each of the years 1976, 1977, and 1978, it redeemed 40 shares pursuant to the agreement; however, it made no redemptions in 1974, 1975, and 1979. Petitioner did not attempt…
2Cases cited10 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- 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
- Niedermeyer v. CommissionerUnited States Tax Court · 1974
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