Rechner v. Commissioner
United States Tax Court
Petitioners received gains in 1952 from the transfer of all but a few qualifying shares in two corporations organized under the F. H. A. program. The transfers were made before any substantial part of the net income to be derived from the property constructed by the corporations was realized and the stock was transferred to a third corporation which petitioners controlled.
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Petitioners received gains in 1952 from the transfer of all but a few qualifying shares in two corporations organized under the F. H. A. program. The transfers were made before any substantial part of the net income to be derived from the property constructed by the corporations was realized and the stock was transferred to a third corporation which petitioners controlled. Held, section 117 (m) I. R. C. 1939, was applicable and the gains were to be treated as ordinary income as gains realized in the sale of stock in collapsible corporations. Held, further, petitioners failed to establish the…
1Opinion of the Court
Mulroney, Judge:
Respondent determined deficiencies in income tax for the year 1952 and additions to tax, as follows:
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The issues in these consolidated cases are (1) whether the gain realized by the petitioners on the transfer of stock in two corporations controlled by them to a third corporation, also controlled by them, is taxable as ordinary income from the sale or exchange of stock in a collapsible corporation within the meaning of section 117 (m) of the Internal Revenue Code of 19391 or, in the alternative, is taxable to the petitioners as compensation under section 22 (a);…
2Cases cited3 opinions
- Barr v. United StatesSupreme Court of the United States · 1945
- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Burge v. CommissionerUnited States Tax Court · 1957
3Cited by18 opinions
- Zuanich v. CommissionerUnited States Tax Court · 1981
- Foil v. CommissionerUnited States Tax Court · 1989
- August v. CommissionerUnited States Tax Court · 1958
- Catterall v. CommissionerUnited States Tax Court · 1977
- Jacobson v. CommissionerUnited States Tax Court · 1959
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