Frantz v. Commissioner
United States Tax Court
Petitioner owned 65 percent of the common stock and 13 percent of the preferred stock of a corporation. He surrendered to the corporation his preferred stock and certain advances owing to him from the corporation. The surrender was non pro rata with respect to other shareholders. Petitioner subsequently sold his common stock. Held: Petitioner did not sustain a loss on his surrender to the corporation of his preferred stock and advances.
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Petitioner owned 65 percent of the common stock and 13 percent of the preferred stock of a corporation. He surrendered to the corporation his preferred stock and certain advances owing to him from the corporation. The surrender was non pro rata with respect to other shareholders. Petitioner subsequently sold his common stock. Held: Petitioner did not sustain a loss on his surrender to the corporation of his preferred stock and advances. His surrender constituted a contribution to the capital of the corporation. To the extent that our prior cases hold that a non pro rata surrender of stock to…
1Opinion of the Court
Leroy Frantz, Jr., and Sheila Frantz, Petitioners v. Commissioner of Internal Revenue, Respondent
Frantz v. Commissioner
Docket No. 16188-79
United States Tax Court
83 T.C. 162; 1984 U.S. Tax Ct. LEXIS 42; 83 T.C. No. 11;
August 7, 1984. August 7, 1984, Filed
Decision will be entered under Rule 155.
Petitioner owned 65 percent of the common stock and 13 percent of the preferred stock of a corporation. He surrendered to the corporation his preferred stock and certain advances owing to him from the corporation. The surrender was non pro rata with respect to other shareholders. Petitioner subsequently…
Also in this document: Dissent.
2Cases cited55 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- James v. United StatesSupreme Court of the United States · 1961
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Whipple v. CommissionerSupreme Court of the United States · 1963
- Foster v. Comm'rUnited States Tax Court · 1983
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