Bialo v. Commissioner
United States Tax Court
Petitioners' closely held corporation issued a pro rata dividend of preferred stock on common stock which petitioners contributed to a charitable trust. The stock was then redeemed by the corporation. Held, one of the principal purposes of the distribution and redemption was the avoidance of Federal income tax and the amount of petitioners' deduction is subject to the limitations contained in sec. 170(e)(1)(A), I.R.C. 1954.
1Opinion of the Court
OPINION
WRIGHT, Judge:
Respondent determined a deficiency of $59,077 in petitioners’ Federal income tax for the taxable year ending August 31, 1978. The sole issue for decision is whether petitioners are entitled to a charitable contribution deduction with respect to certain stock in their closely held corporation pursuant to the provisions of sections 306(a) and 170(e)(1)(A).1
The facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference.
Petitioner2 resided in New Rochelle, New York, at the time…
2Cases cited9 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Palmer v. CommissionerUnited States Tax Court · 1974
- Humacid Co. v. CommissionerUnited States Tax Court · 1964
- Roebling v. CommissionerUnited States Tax Court · 1981
- Chamberlin v. CommissionerUnited States Tax Court · 1952
4 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Carl A. Pescosolido, Sr. v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1989
- Tecumseh Corrugated Box Co. v. CommissionerUnited States Tax Court · 1990
- Pescosolido v. CommissionerUnited States Tax Court · 1988
- Estate of Johnson v. CommissionerUnited States Tax Court · 1999
- Bialo v. CommissionerUnited States Tax Court · 1987
4 more not listed; retrieve them via the Exa API.