Brekke v. Commissioner
United States Tax Court
Corporation A was transferred to B, a charitable foundation. B liquidated A and leased the bulk of the assets to C, a corporation formed to operate the business. The sales price for A was to be paid solely out of the rental on the lease, which was 80 percent of C's net profits.
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Corporation A was transferred to B, a charitable foundation. B liquidated A and leased the bulk of the assets to C, a corporation formed to operate the business. The sales price for A was to be paid solely out of the rental on the lease, which was 80 percent of C's net profits. R, who had held one-third of A's common stock and was its president and manager, became president and manager of C. R determined how many shares of C's stock could be purchased by employees according to their respective positions in the company. Although A was not worth more than $ 500,000, at the time of its transfer…
1Opinion of the Court
Train, Judge:
Respondent determined deficiencies in the taxes of Weiser Company, transferor, as follows:
Year Taa> Amount
1953 Income and excess profits_$89,152. 26
1954 Income_ 131,698.45
Respondent further determined that petitioner was liable, as transferee, for Weiser Company’s deficiencies for those years to the extent of $1,727.12.
The only issues presented relate to the deficiencies determined against the transferor:1(1) Whether the amounts it paid in the form of rent to University Hill Foundation are deductible as rental expense; and(2) Whether certain expenditures totaling $26,504.71 are…
2Cases cited5 opinions
- W. H. Armston Co., Inc. v. Commissioner of Internal Revenue. Armston v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- R. E. L. Finley v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Jerline Dick FinleyCourt of Appeals for the Tenth Circuit · 1958
- Brown v. CommissionerUnited States Tax Court · 1961
- Anderson Dairy, Inc. v. CommissionerUnited States Tax Court · 1963
- Royal Farms Dairy Co. v. CommissionerUnited States Tax Court · 1963
3Cited by16 opinions
- Commissioner v. BrownSupreme Court of the United States · 1965
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- University Hill Foundation v. CommissionerUnited States Tax Court · 1969
- University Hill Foundation, Etc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1971
- Estate of Goldenberg v. CommissionerUnited States Tax Court · 1964
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