Cunningham v. Commissioner
United States Tax Court
Petitioners sold shares of corporation X to corporation A in December 1958 for cash and installment obligations represented by A's promissory notes. In October 1960, after dissension in the management of corporation A, corporation X's shares were transferred to corporation B which assumed the installment obligation of corporation A on the promissory notes held by petitioners.
Read the full summary
Petitioners sold shares of corporation X to corporation A in December 1958 for cash and installment obligations represented by A's promissory notes. In October 1960, after dissension in the management of corporation A, corporation X's shares were transferred to corporation B which assumed the installment obligation of corporation A on the promissory notes held by petitioners. Held, that this was not a disposition by petitioners of their installment obligations resulting in a taxable gain measured by the excess in value of corporation X's shares when acquired by corporation B over petitioners'…
1Opinion of the Court
Train, Judge:
Respondent has determined income tax deficiencies for 1960 of $877.98 against John I. Cunningham and Diane Cunningham and $111,710.26 against Weaver and Gwendolyn Cunningham.
The issue is whether petitioners realized a taxable gain on the disposal of certain installment obligations arising from the sale of corporate stock.
FINDINGS OF FACT
Most of the facts are stipulated and these are incorporated herein by this reference.
The petitioners in each proceeding are husband and wife and John Cunningham is the son of Weaver Cunningham. Generally, Weaver Cunningham will be referred to…
2Cases cited6 opinions
- Burrell Groves, Inc. v. CommissionerUnited States Tax Court · 1954
- Boca Ratone Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1936
- Burrell Groves, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Jack Ammann Photogrammetric Engineers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- Oregon Pulp & Paper Co. v. CommissionerUnited States Board of Tax Appeals · 1942
1 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Affiliated Capital Corp. v. CommissionerUnited States Tax Court · 1987
- Affiliated Capital Corp. v. CommissionerUnited States Tax Court · 1987
- Cunningham v. CommissionerUnited States Tax Court · 1965
- First Nat'l Bank v. CommissionerUnited States Tax Court · 1988
- Kutsunai v. CommissionerUnited States Tax Court · 1983
3 more not listed; retrieve them via the Exa API.