Blevins v. Commissioner
United States Tax Court
Petitioner, as a partner, received investment credits in 1965 and 1966 arising from the purchase of sec. 38 property by the partnership. On Dec. 31, 1966, the partnership was converted into a corporation pursuant to sec. 351 with petitioner retaining the same percentage interest as he had in the partnership. On July 1, 1968, petitioner made gifts of 53.33 percent of his stock, thereby reducing his interest in the corporation from 45 percent to 21 percent.
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Petitioner, as a partner, received investment credits in 1965 and 1966 arising from the purchase of sec. 38 property by the partnership. On Dec. 31, 1966, the partnership was converted into a corporation pursuant to sec. 351 with petitioner retaining the same percentage interest as he had in the partnership. On July 1, 1968, petitioner made gifts of 53.33 percent of his stock, thereby reducing his interest in the corporation from 45 percent to 21 percent. Held, petitioner's disposition of 53.33 percent of his interest in the corporation triggered a recapture of 53.33 percent of the investment…
1Opinion of the Court
W. Frank Blevins and Henrietta W. Blevins, Petitioners v. Commissioner of Internal Revenue, Respondent
Blevins v. Commissioner
Docket No. 770-72
United States Tax Court
61 T.C. 547; 1974 U.S. Tax Ct. LEXIS 161; 61 T.C. No. 59;
January 29, 1974, Filed
Decision will be entered for the respondent.
Petitioner, as a partner, received investment credits in 1965 and 1966 arising from the purchase of sec. 38 property by the partnership. On Dec. 31, 1966, the partnership was converted into a corporation pursuant to sec. 351 with petitioner retaining the same percentage interest as he had in the partnership.…
2Cases cited3 opinions
- Clayton J. Charbonnet and Adelaide Tutt, Wife of Clayton J. Charbonnet v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- Aboussie v. CommissionerUnited States Tax Court · 1973
- Blevins v. CommissionerUnited States Tax Court · 1974