Rigsby v. Commissioner
United States Board of Tax Appeals
1. A corporation in which the taxpayer was a stockholder was dissolved and the assets transferred to a partnership composed of the former stockholders.
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1. A corporation in which the taxpayer was a stockholder was dissolved and the assets transferred to a partnership composed of the former stockholders. Held, that the taxpayer realized taxable gain to the extent the value of the property received in liquidation exceeded the cost of the stock. 2. Income to which the corporation was entitled but which it never received, it being appropriated by the stockholders, may not be included in the assets of the corporation at the time of its dissolution. 3. Under the community property laws of Texas the wife has a vested interest in community property…
1Opinion of the Court
*196OPINION.
ARUndell:
The first proposition of the taxpayer is that, as his ownership in the partnership was in the same proportion as his OAvnership of stock had been in the corporation, the transaction Avhereby the partnership took over the corporate assets did not result in taxable gain. This question has been before the Board in several cases and we have consistently held that in such cases the stockholder realized taxable gain to the extent that the value of the property receded in liquidation exceeded the cost of the stock. Appeal of Huffman, 1 B. T. A. 52; Appeal of Estate of Buchmiller, 1…
2Cases cited1 opinion
- Rensselaer & S. R. v. IrwinCourt of Appeals for the Second Circuit · 1918
3Cited by5 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Brittingham v. CommissionerUnited States Board of Tax Appeals · 1928
- Edmond Weil, Inc. v. CommissionerUnited States Tax Court · 1944
- Rigsby v. CommissionerUnited States Board of Tax Appeals · 1927
- Rouse v. CommissionerUnited States Tax Court · 1946