Kaufman v. Commissioner
United States Tax Court
Corporation A was recapitalized in 1964 and liquidated in 1965. The Commissioner seeks to strip the recapitalization of its tax-free nature due to the lack of a business purpose. Held, on the record herein, one which is fully stipulated, the petitioners have shown a valid business purpose for the recapitalization, and the Commissioner's reliance on inference is not sufficient to strip the transaction of its otherwise tax-free character. Sec. 368(a)(1)(E), I.R.C. 1954.
1Opinion of the Court
Jerome J. Kaufman and Janet Kaufman, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Kaufman v. Commissioner
Docket Nos. 1379-69, 1381-69, 1382-69, 1384-69
United States Tax Court
55 T.C. 1046; 1971 U.S. Tax Ct. LEXIS 166;
March 24, 1971, Filed
Decisions will be entered under Rule 50.
Corporation A was recapitalized in 1964 and liquidated in 1965. The Commissioner seeks to strip the recapitalization of its tax-free nature due to the lack of a business purpose. Held, on the record herein, one which is fully stipulated, the petitioners have shown a valid business purpose for the…
2Cases cited10 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Skenandoa Rayon Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
- Commissioner of Internal Revenue v. Van VorstCourt of Appeals for the Ninth Circuit · 1932
- Okonite Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1946
- Van Vorst v. CommissionerUnited States Board of Tax Appeals · 1931
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