Frederick Weisman Co. v. Commissioner
United States Tax Court
As a condition for obtaining a 5-year automobile distributorship from TMS, P redeemed its outstanding shares from all but one shareholder.
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As a condition for obtaining a 5-year automobile distributorship from TMS, P redeemed its outstanding shares from all but one shareholder. The distributorship was necessary for the survival of P. Held, applying the "origin and nature" of the transaction test, neither the amount paid for the stock nor the incidental expenses incurred in connection with the redemption are deductible under sec. 162(a), I.R.C.Held further, both the purchase price of the stock and the incidental expenses in connection with the redemption are nondeductible capital expenditures. Five Star Mfg. Co. v. Commissioner,…
1Opinion of the Court
FREDERICK WEISMAN COMPANY, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Frederick Weisman Co. v. Commissioner
Docket No. 23934-89
United States Tax Court
97 T.C. 563; 1991 U.S. Tax Ct. LEXIS 101; 97 T.C. No. 39;
November 20, 1991, Filed
As a condition for obtaining a 5-year automobile distributorship from TMS, P redeemed its outstanding shares from all but one shareholder. The distributorship was necessary for the survival of P. Held, applying the "origin and nature" of the transaction test, neither the amount paid for the stock nor the incidental expenses incurred in connection with…
2Cases cited21 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- United States v. GilmoreSupreme Court of the United States · 1963
- Woodward v. CommissionerSupreme Court of the United States · 1970
- United States v. Hilton Hotels Corp.Supreme Court of the United States · 1970
- Arkansas Best Corp. v. CommissionerSupreme Court of the United States · 1988
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