Stinnett v. Commissioner
United States Tax Court
1. Held, non-interest-bearing notes issued to the stockholders of an electing small business corporation in exchange for their capital in the predecessor partnership, whether regarded as "debt" or as "equity," did not give rise to more than one class of stock within the meaning of sec. 1371(a), I.R.C. 1954. Regs. sec. 1.1371-1(g) invalidated. 2. Held, the leasehold term was for an indefinite period and leasehold improvements thereon must be depreciated over their useful life.
1Opinion of the Court
James L. Stinnett, Jr., et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Stinnett v. Commissioner
Docket Nos. 3414-67, 3415-67, 3416-67, 3418-67, 3515-67, 5094-67
United States Tax Court
54 T.C. 221; 1970 U.S. Tax Ct. LEXIS 214;
February 11, 1970, Filed
Decisions will be entered under Rule 50.
1. Held, non-interest-bearing notes issued to the stockholders of an electing small business corporation in exchange for their capital in the predecessor partnership, whether regarded as "debt" or as "equity," did not give rise to more than one class of stock within the meaning of sec.…
Also in this document: Concurrence · Tannenwald; Concurrence · Featherston; Dissent.
2Cases cited38 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Brewster v. GageSupreme Court of the United States · 1930
- Sanford v. CommissionerUnited States Tax Court · 1968
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