Drybrough v. Commissioner
United States Tax Court
Petitioner transferred improved real estate to five newly formed controlled corporations which assumed existing mortgages. Held, petitioner has failed to show by the clear preponderance of the evidence that his principal purpose with respect to the assumption of the liabilities in the circumstances was not to avoid Federal income tax on the exchange. The entire amount of the liabilities assumed is to be treated as money received by petitioner on the exchange.
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Petitioner transferred improved real estate to five newly formed controlled corporations which assumed existing mortgages. Held, petitioner has failed to show by the clear preponderance of the evidence that his principal purpose with respect to the assumption of the liabilities in the circumstances was not to avoid Federal income tax on the exchange. The entire amount of the liabilities assumed is to be treated as money received by petitioner on the exchange. Sec. 357(b), I.R.C. 1954. Held, further, section 1239, I.R.C. 1954, does not apply to a transfer of depreciable property by petitioner…
1Opinion of the Court
F. W. Drybrough and Estate of Marion S. Drybrough, Deceased, Citizens Fidelity Bank and Trust Company, Executor, Petitioners, v. Commissioner of Internal Revenue, Respondent
Drybrough v. Commissioner
Docket No. 87956
United States Tax Court
42 T.C. 1029; 1964 U.S. Tax Ct. LEXIS 45;
September 14, 1964, Filed
Decision will be entered under Rule 50.
Petitioner transferred improved real estate to five newly formed controlled corporations which assumed existing mortgages. Held, petitioner has failed to show by the clear preponderance of the evidence that his principal purpose with respect to the…
2Cases cited40 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
- Ach v. CommissionerUnited States Tax Court · 1964
- United States v. HendlerSupreme Court of the United States · 1938
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