Kelley v. Commissioner
United States Tax Court
A corporation bought and subdivided certain Florida real estate. After a little over a year's activity in selling these lots, the two remaining stockholders sold their shares in the corporation to a syndicate at a profit. The corporation was then dissolved and the purchasers sold the remaining lots over the next 3 years.
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A corporation bought and subdivided certain Florida real estate. After a little over a year's activity in selling these lots, the two remaining stockholders sold their shares in the corporation to a syndicate at a profit. The corporation was then dissolved and the purchasers sold the remaining lots over the next 3 years. Assuming the same basis and accounting method used by the corporation at the time of the sale of its stock, the amount of the net income which might be reasonably anticipated, as of the time of the sale of the stock, to be realized from the property plus the amount of net…
1Opinion of the Court
OPINION.
Keen, Judge:
The question to be resolved in these cases is whether the corporation, Island Shores, Inc., was a collapsible corporation in 1952 as that term is defined in section 117 (m) (2) (A) of the Internal Revenue Code of 1939 1 and therefore the gain realized by petitioners from the sale of its stock in that year is to be considered as gain from the sale of property which is not a capital asset pursuant to the provisions of section 117 (m) (1) ,2
Petitioners’ argument may be summarized as follows: (1) They did not have any intention of causing the corporation to be formed or…
2Cases cited7 opinions
- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Arthur Glickman Herman Glickman and Ruth Glickman and Aaron Glickmand and Freda Glickman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1958
- Abbott v. CommissionerUnited States Tax Court · 1957
- Burge v. CommissionerUnited States Tax Court · 1957
- Sidney v. CommissionerUnited States Tax Court · 1958
2 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Sidney v. CommissionerCourt of Appeals for the Second Circuit · 1960
- Commissioner of Internal Revenue v. James B. Kelley and Lena S. Kelley, and John Waltman and Doris WaltmanCourt of Appeals for the Fifth Circuit · 1961
- Mintz v. CommissionerCourt of Appeals for the Second Circuit · 1960
- Heft v. CommissionerUnited States Tax Court · 1960
- Pomponio v. CommissionerUnited States Tax Court · 1960
13 more not listed; retrieve them via the Exa API.