Legal Opinion

Gershman Family Foundation v. Commissioner

United States Tax Court

Decided August 15, 1984No. Docket Nos. 16385-81, 16386-81PublishedCited by 5 opinions

In 1971, G sold an apartment building and received a promissory note (AIPN) secured by an all-inclusive deed of trust (AITD) on the building. At the time of sale, the building was encumbered by two prior notes (senior notes) secured by deeds of trust. An addendum to the AITD required G to pay the senior notes and gave the obligor on the AIPN the right to make payments due on the senior notes and offset any such payments against amounts due on the AIPN.

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In 1971, G sold an apartment building and received a promissory note (AIPN) secured by an all-inclusive deed of trust (AITD) on the building. At the time of sale, the building was encumbered by two prior notes (senior notes) secured by deeds of trust. An addendum to the AITD required G to pay the senior notes and gave the obligor on the AIPN the right to make payments due on the senior notes and offset any such payments against amounts due on the AIPN. In 1972, G created a private foundation and was thereafter a "disqualified person" with respect to the foundation and was thus subject to…

1Opinion of the Court

Cohen, Judge:

In docket No. 16385-81, petitioner Harold and Julia Gershman Family Foundation seeks redetermination of excise taxes and additions to tax determined in a notice dated May 27, 1981, as follows:

TYE Dec. 31-Sec. 49401 Sec. 4942(a) Sec. 4945(a)(1) Sec. 6651(a)(1)

1973 $756 $1,571 $393

1974 703 $2,528 2,634 1,291

1975 240 4,140 1,035

1976 240 4,140 1,035

1977 240 4,140 1,035

1978 120 4,140 1,035

1979 120 4,140 1,035

1980 120 4,140 1,035

plus additional taxes of $27,599 pursuant to section 4942(b) and $42,050 pursuant to section 4945(b)(1), and additions to tax of $69,649 pursuant to section…

2Cases cited6 opinions

  1. Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
  2. Stonecrest Corp. v. CommissionerUnited States Tax Court · 1955
  3. Adams v. CommissionerUnited States Tax Court · 1978
  4. Goodman v. CommissionerUnited States Tax Court · 1980
  5. Voight v. CommissionerUnited States Tax Court · 1977

1 more not listed; retrieve them via the Exa API.

3Cited by5 opinions

  1. Estate of Reis v. CommissionerUnited States Tax Court · 1986
  2. Wood v. CommissionerUnited States Tax Court · 1990
  3. Estate of Reis v. CommissionerUnited States Tax Court · 1986
  4. Gershman Family Foundation v. CommissionerUnited States Tax Court · 1984
  5. Wood v. CommissionerUnited States Tax Court · 1990

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