Cook v. Commissioner
United States Tax Court
1. Taxpayer was owner of 300 shares of stock in X corporation. On December 15, 1941, its assets had been partially sold, and on that day the stockholders voted completely to liquidate and dissolve before December 31, 1941. On December 23, 1941, taxpayer assigned to each of his two sons 60 shares of the stock owned by him. On December 29, 1941, checks in complete liquidation of the corporation were issued to the stockholders.
Read the full summary
1. Taxpayer was owner of 300 shares of stock in X corporation. On December 15, 1941, its assets had been partially sold, and on that day the stockholders voted completely to liquidate and dissolve before December 31, 1941. On December 23, 1941, taxpayer assigned to each of his two sons 60 shares of the stock owned by him. On December 29, 1941, checks in complete liquidation of the corporation were issued to the stockholders. Held, petitioner's intent was to make gifts of a proportion of the distributions in liquidation and not bona fide gifts of stock to his sons, and the gain upon…
1Opinion of the Court
OIUNION.
Van Fossan, Judge-.
The first issue here presented is whether or not the petitioner, on December 23, 1941, made gifts to each of his sons of 60 shares of the common stock of Midland. The respondent contends that the petitioner did not make gifts of the stock, but merely assigned to his sons the. proceeds of liquidation of 120 shares of stock, and that tire gain thereon is taxable to the petitioner. The petitioner contends that he made valid gifts of stock to his sons and that the gain realized on the liquidation of the shares so given is taxable to the donees.
The facts have been set…
2Cited by20 opinions
- Rushing v. CommissionerUnited States Tax Court · 1969
- Palmer v. CommissionerUnited States Tax Court · 1974
- Stern v. CommissionerUnited States Tax Court · 1950
- Edwin W. Hudspeth and Maxine G. Hudspeth v. United StatesCourt of Appeals for the Eighth Circuit · 1972
- John P. Kinsey and Edith B. Kinsey v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1973
15 more not listed; retrieve them via the Exa API.