Standard Linen Service, Inc. v. Commissioner
United States Tax Court
1. Model Laundry Co. operated a laundry and linen supply business, the latter partially by a wholly owned subsidiary, Standard Linen. Model had 61,795 shares of stock outstanding, 51,407 of which were held by one family. Model needed capital for repairs, liabilities, and expansion. The family shareholders, excepting Henry Marks (family head, Model's president, and holder of 14,500 shares), decided to sell their stock.
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1. Model Laundry Co. operated a laundry and linen supply business, the latter partially by a wholly owned subsidiary, Standard Linen. Model had 61,795 shares of stock outstanding, 51,407 of which were held by one family. Model needed capital for repairs, liabilities, and expansion. The family shareholders, excepting Henry Marks (family head, Model's president, and holder of 14,500 shares), decided to sell their stock. A purchaser, Alsco, was secured, which was interested solely in acquiring Model's linen supply assets. The family, joined by minority interests, offered only their stock for…
1Opinion of the Court
Testjens, Judge:
These consolidated proceedings involve deficiencies in income tax for the year 1953 in the amounts set forth below.- •
Docket Do. Petitioner Deficiency
67447 Standard Linen Service, Inc_ $2,460.00
69229 The Model Laundry Co., Transferee_ 2,460. 00
69230 The Model Laundry Co_ 308, 529.39
69231 Dolph Harteveld Trust No. 1, et al- 11,992.45
69232 Dolph and Lillian M. Harteveld_223, 908. 09
69233 Henry A. and Hermina M. Marks- 515, 270.13
69234 Bernard D. and Bette H. Gillman_ 85,350.91
69235 -Melvin B. and Roslyn H. Stern_ 87, 027.51
69236 Stanley A. Marks_ 411, 933. 02
69237 Henry A. Marks…
2Cases cited15 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. WinmillSupreme Court of the United States · 1938
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- Berwind v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
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3Cited by39 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Martin Ice Cream Co. v. Comm'rUnited States Tax Court · 1998
- Fox v. CommissionerUnited States Tax Court · 1968
- Meyer v. CommissionerUnited States Tax Court · 1966
- Edgar S. Idol, Katherine G. Idol, and Speedway Transports, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
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