Kniffen v. Commissioner
United States Tax Court
1. Held, that the transfer by petitioner Arthur Kniffen in 1957 of his sole proprietorship assets and liabilities (including a $ 44,625.79 liability owing to his transferee corporation) to his controlled corporation constituted a partially taxable exchange under sections 351 and 357, I.R.C. 1954. 2. Held, that petitioners did not receive taxable interest income in the amount of $ 3,139.10 during 1957. 3. Held, that petitioners did not receive taxable income in the amount of…
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1. Held, that the transfer by petitioner Arthur Kniffen in 1957 of his sole proprietorship assets and liabilities (including a $ 44,625.79 liability owing to his transferee corporation) to his controlled corporation constituted a partially taxable exchange under sections 351 and 357, I.R.C. 1954. 2. Held, that petitioners did not receive taxable interest income in the amount of $ 3,139.10 during 1957. 3. Held, that petitioners did not receive taxable income in the amount of $ 7,000 during 1957, resulting from the exchange of a promissory note. 4. Held, petitioner is not entitled to deduct…
1Opinion of the Court
Withey, Judge:
The respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows:
Year Deficiency
1955_ $2,384.95
1957_ 10,779.48
The issues presented for our decision are:(1) Whether the transfer by petitioner Arthur L. Kniffen in 1957 of the assets and liabilities of his sole proprietorship to his controlled corporation constituted a taxable exchange under sections 351 and 357 of the Internal Revenue Code of 1954.(2) Whether petitioner realized interest income in the amount of $3,139.10 in 1957.(3) Whether petitioner realized taxable income in 1957…
2Cases cited21 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Healy v. CommissionerSupreme Court of the United States · 1953
- United States v. HendlerSupreme Court of the United States · 1938
- Patchen v. CommissionerUnited States Tax Court · 1956
- Automobile Club of New York, Inc. v. CommissionerUnited States Tax Court · 1959
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3Cited by26 opinions
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- B & L FARMS CO. v. United StatesDistrict Court, S.D. Florida · 1965
- Dri-Powr Distributors Asso. Trust v. CommissionerUnited States Tax Court · 1970
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