Palmer v. Commissioner
United States Tax Court
Petitioners contracted to sell real property owned by Hilda and received part payment of the purchase price. Two days later they transferred the property to a corporation wholly owned by them. Subsequently the corporation carried out the sales contract by transferring the property to the named purchasers and received the balance of the purchase price.
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Petitioners contracted to sell real property owned by Hilda and received part payment of the purchase price. Two days later they transferred the property to a corporation wholly owned by them. Subsequently the corporation carried out the sales contract by transferring the property to the named purchasers and received the balance of the purchase price. Held, the sale was actually made by petitioners, not the corporation, and the gain realized upon the sale of the property is taxable to petitioners as long-term capital gain.
1Opinion of the Court
OPINION
Mulroney, Judge:
Respondent determined a deficiency in petitioners’ 1960 income tax in the amount of $6,214.33. The issue is whether the gain realized upon the sale of a parcel of realty is taxable to petitioners or their wholly owned corporation.
All of the facts have been stipulated and they are found accordingly.
John E. Pahner and Hilda I. Palmer, with residence at Cumberland Center, Maine, filed a joint income tax return for the taxable year 1960 with the district director of internal revenue, Augusta, Maine.
J. E. Palmer Co. is a Maine corporation which is wholly owned by…
2Cases cited2 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Nace Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by19 opinions
- Spencer D. Stewart, Et Ux. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Derr v. CommissionerUnited States Tax Court · 1981
- Hallowell v. CommissionerUnited States Tax Court · 1971
- Vest v. CommissionerUnited States Tax Court · 1971
- John E. Palmer v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1965
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