Buffalo Tool & Die Mfg. Co. v. Commissioner
United States Tax Court
Individual petitioners H and W are liable as transferees of Corporation B, which sold all its machinery for a lump sum to a syndicate of used machinery dealers pursuant to a plan to liquidate the corporation within 12 months. At closing, H, on behalf of B, presented a letter to the syndicate containing an alleged allocation of the sales price. The syndicate resold most of the machinery in an auction held 2 1/2 months later, and the remainder in individual sales.
Read the full summary
Individual petitioners H and W are liable as transferees of Corporation B, which sold all its machinery for a lump sum to a syndicate of used machinery dealers pursuant to a plan to liquidate the corporation within 12 months. At closing, H, on behalf of B, presented a letter to the syndicate containing an alleged allocation of the sales price. The syndicate resold most of the machinery in an auction held 2 1/2 months later, and the remainder in individual sales. Held, in calculating depreciation recapture, the allocation contained in the letter was neither realistic nor the result of…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined a deficiency in the corporate income tax for 1973 of the transferor, Buffalo Tool & Die Manufacturing Co., Inc. (hereinafter Buffalo Tool or the corporation), of $403,541, based upon adjustments for depreciation recapture under section 1245.1 He determined that petitioners Peter Hosta, Jr. (hereinafter Hosta), and Eleanor Hosta are liable as transferees of Buffalo Tool as follows:
Hosta.$403,541.00
Eleanor Hosta.267,811.88
By amendment to answer, respondent redetermined the transfer- or’s deficiency to be $653,979.64 and asserted a transferee liability…
2Cases cited18 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Danielson v. CommissionerUnited States Tax Court · 1965
- Messing v. CommissionerUnited States Tax Court · 1967
- Schulz v. CommissionerCourt of Appeals for the Ninth Circuit · 1961
13 more not listed; retrieve them via the Exa API.
3Cited by237 opinions
- Neely v. CommissionerUnited States Tax Court · 1985
- Parker v. CommissionerUnited States Tax Court · 1986
- Chiu v. CommissionerUnited States Tax Court · 1985
- Stanley Works v. CommissionerUnited States Tax Court · 1986
- Estate of Gilford v. CommissionerUnited States Tax Court · 1987
232 more not listed; retrieve them via the Exa API.