Legal Opinion
Ellis Campbell, Jr., District Director of Internal Revenue v. Clifford W. Wheeler and Lillian v. Wheeler, Appelles
Court of Appeals for the Fifth Circuit
Decided March 18, 1965No. 21442PublishedCited by 5 opinions
1Opinion of the Court
GE WIN, Circuit Judge:
This appeal requires application of the provisions of the Internal Revenue Code of 1954 that relate to the deferment of tax liability upon a transfer of property by a taxpayer to a corporation that he controls.
In general, whenever a taxpayer sells or exchanges property, the gain realized on the sale or exchange must be recognized for tax purposes. 1 The strict application of this principle to an exchange of property for stock in a newly-formed corporation would probably deter the organization of new corporations for valid business purposes. Hence, Congress has permitted…
2Cases cited4 opinions
- United States v. HendlerSupreme Court of the United States · 1938
- R. A. Bryan and Ruby M. Bryan, C. B. McNairy and Rowena A. McNairy W. H. Weaver and Edith H. Weaver v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Estate of Stoll v. CommissionerUnited States Tax Court · 1962
- Robert M. Jewell and Mildred Jewell, Husband and Wife v. United StatesCourt of Appeals for the Ninth Circuit · 1964
3Cited by5 opinions
- J. E. Davant and Kathryn Davant v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. J. E. Davant and Kathryn DavantCourt of Appeals for the Fifth Circuit · 1966
- Coltec Industries, Inc. v. United StatesUnited States Court of Federal Claims · 2004
- John P. Thompson and Wife Mary Carol Thompson v. Ellis Campbell, Jr., District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- Harrison v. CommissionerUnited States Tax Court · 1981
- ISC Industries, Inc. v. CommissionerUnited States Tax Court · 1971