Cisler v. Commissioner
United States Tax Court
In 1952 petitioner sold his preferred and common stock in Radio Kentucky, Inc., to the corporation for the total sum of $ 60,000 of which $ 15,700 was the price of the preferred and $ 44,300 the price of the common. Since petitioner's adjusted cost basis for the preferred stock equaled the sales price, there was no gain or loss.
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In 1952 petitioner sold his preferred and common stock in Radio Kentucky, Inc., to the corporation for the total sum of $ 60,000 of which $ 15,700 was the price of the preferred and $ 44,300 the price of the common. Since petitioner's adjusted cost basis for the preferred stock equaled the sales price, there was no gain or loss. For the common stock, which had a cost basis of zero, he received in 1952 the amount of $ 8,000 in cash and the corporation assumed his indebtedness of $ 20,000 to third parties. The remainder of the sales price for the common stock was received by petitioner in 1953.…
1Opinion of the Court
OPINION.
Dawson, Judge:
Despondent determined a deficiency in income tax and an addition to tax under section 294(d) (1) (A) of the Internal Revenue Code of 1939 for the taxable year 1952 in the amounts of $9,250.50 and $825.41, respectively.
The only issue for decision is whether the petitioners received more than 30 percent of the sales price of their preferred and common stock in Radio Kentucky, Inc., in the taxable year 1952 so as to disqualify the gain for installment sales treatment under section 44(b) of the Internal Revenue Code of 1939.1 Additional issues presented by the pleadings have…
2Cases cited7 opinions
- Caldwell v. United StatesCourt of Appeals for the Third Circuit · 1940
- McWilliams v. CommissionerUnited States Board of Tax Appeals · 1929
- Freeman v. CommissionerUnited States Tax Court · 1961
- Lucas v. SchneiderCourt of Appeals for the Sixth Circuit · 1931
- McInerney v. CommissionerUnited States Board of Tax Appeals · 1933
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3Cited by16 opinions
- Robert B. Riss and Georgina Riss v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1966
- Irwin v. CommissionerUnited States Tax Court · 1966
- United States v. James H. Marshall and Thelma MarshallCourt of Appeals for the Ninth Circuit · 1966
- Estate of Broadhead v. CommissionerUnited States Tax Court · 1966
- R. Paul Sprague and Mary G. Sprague v. United StatesCourt of Appeals for the Tenth Circuit · 1980
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