Rigsby v. Commissioner

1. A corporation in which the taxpayer was a stockholder was dissolved and the assets transferred to a partnership composed of the former stockholders. Held, that the taxpayer realized taxable gain to the extent the value of the property received in liquidation exceeded the cost of the stock. 2. Income to which the corporation was entitled but which it never received, it being appropriated by the stockholders, may not be included in the assets of the corporation at the time of its dissolution. 3. Under the community property laws of Texas the wife has a vested interest in community property…