Leib v. Commissioner
United States Tax Court
Petitioner, a dentist, conducted his private practice through a wholly owned professional corporation. The professional corporation established an employees pension trust, with petitioner as trustee. In December 1980, petitioner sold stock to the trust for cash and a non-interest-bearing demand note. In February 1981, the trust sold the stock to a third party and paid off the note.
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Petitioner, a dentist, conducted his private practice through a wholly owned professional corporation. The professional corporation established an employees pension trust, with petitioner as trustee. In December 1980, petitioner sold stock to the trust for cash and a non-interest-bearing demand note. In February 1981, the trust sold the stock to a third party and paid off the note. In December 1981, petitioner determined that the price at which he sold the stock to the trust exceeded the price that the trust would have had to pay for the stock on the open market, and paid such difference to…
1Opinion of the Court
GOFFE, Judge:
The Commissioner determined that petitioner was hable for the excise tax imposed by section 4975(a)1 in the amount of $7,787.50 for each of the taxable years 1980 and 1981. The issues for decision are: (1) Whether the tax provided in section 4975(a) should be imposed when a prohibited transaction would qualify as a prudent investment if judged under the highest fiduciary standards; (2) whether petitioner is hable for the tax imposed by section 4975(a) for both of the taxable years 1980 and 1981; and (3) whether respondent correctly determined the amount involved for purposes of…
2Cases cited13 opinions
- Bingler v. JohnsonSupreme Court of the United States · 1969
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- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
- Donovan v. CunninghamCourt of Appeals for the Fifth Circuit · 1983
- Commissioner v. Portland Cement Co. of UtahSupreme Court of the United States · 1981
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3Cited by23 opinions
- In Re Gulf Pension LitigationDistrict Court, S.D. Texas · 1991
- Rutland v. CommissionerUnited States Tax Court · 1987
- Janpol v. CommissionerUnited States Tax Court · 1993
- Flahertys Arden Bowl, Inc. v. CommissionerUnited States Tax Court · 2000
- Wood v. CommissionerUnited States Tax Court · 1990
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