Frizzelle Farms, Inc. v. Commissioner
United States Tax Court
Petitioner exchanged 4,000 shares of Lorillard stock for like amounts of Loew's debentures and warrants in a taxable transaction occurring on Nov. 29, 1968. Held, the value of the warrants received by petitioner in the transaction exceeded 30 percent of the selling price and petitioner may not report his gain using the installment method under sec. 453.
1Opinion of the Court
Irwin, Judge:
Respondent determined a deficiency of $158,926.26 in the income tax of petitioner for 1968. Several questions were settled prior to trial, and petitioner conceded an alternative issue on brief.1 Accordingly, the only issue for decision is whether petitioner may report the gain realized on its exchange of 4,000 shares of Lorillard stock for debentures and stock warrants of Loew’s by use of the installment method under section 453.2
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Petitioner is Frizzelle Farms, Inc. (hereafter petitioner), a North Carolina…
2Cases cited4 opinions
- Heiner v. CrosbyCourt of Appeals for the Third Circuit · 1928
- Moore-McCormack Lines, Inc. v. CommissionerUnited States Tax Court · 1965
- Rushton v. CommissionerUnited States Tax Court · 1973
- White Farm Equipment Co. v. CommissionerUnited States Tax Court · 1973
3Cited by16 opinions
- Kolom v. Comm'rUnited States Tax Court · 1978
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- Johnson v. CommissionerUnited States Tax Court · 1980
- Warren Jones Co. v. CommissionerUnited States Tax Court · 1977
- West Shore Fuel, Inc. v. United States of America, Ruth A. Kolb v. United StatesCourt of Appeals for the Second Circuit · 1979
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