Hallowell v. Commissioner
United States Tax Court
T and his immediate family owned over 96 percent of C's outstanding stock; T and his wife alone held 51.25 percent of its stock. T was the only salaried officer of C. At some 13 separate times between Dec. 24, 1963, and Feb. 21, 1966, T transferred greatly appreciated marketable securities from his account with a brokerage firm to C's account with the same firm. After each such transfer, all of such securities were sold on the open market.
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T and his immediate family owned over 96 percent of C's outstanding stock; T and his wife alone held 51.25 percent of its stock. T was the only salaried officer of C. At some 13 separate times between Dec. 24, 1963, and Feb. 21, 1966, T transferred greatly appreciated marketable securities from his account with a brokerage firm to C's account with the same firm. After each such transfer, all of such securities were sold on the open market. C made distributions to or for the benefit of T and his wife which generally corresponded in amount to the gains realized on the sales. Held, the gains…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined the following deficiencies in petitioners’ income tax:
Calendar year Deficiency
1964 _ $1, 696. 00
1965 _ 7,807. 01
1966 _ 1,144.80
The only question presented for decision is whether petitioner James M. Hallowell is to be charged with the gain derived from the sale of certain securities which he had “donated” to a family-controlled corporation shortly before the sales in issue were made. The facts have been stipulated.
-Petitioners James M. and Mary M. Hallowell are husband and wife. They filed joint Federal income tax returns .for the calendar years…
2Cases cited23 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- Rushing v. CommissionerUnited States Tax Court · 1969
18 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Spencer D. Stewart, Et Ux. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
- Adams v. CommissionerUnited States Tax Court · 1978
- Estate of Robert G. Kluener, Donald E. Hathaway, Co-Executor, Charlotte J. Kluener v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1998
27 more not listed; retrieve them via the Exa API.