Estate of Clause v. Comm'r
United States Tax Court
P, prior to his death, sold all of his shares in C to C's employee stock ownership plan in 1996. P purchased qualified replacement property with most of the proceeds from the sale within a year of the sale. P's 1996 original Federal tax return was filed timely (i.e., on or before Apr. 15, 1997) and did not report the transaction.
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P, prior to his death, sold all of his shares in C to C's employee stock ownership plan in 1996. P purchased qualified replacement property with most of the proceeds from the sale within a year of the sale. P's 1996 original Federal tax return was filed timely (i.e., on or before Apr. 15, 1997) and did not report the transaction. On Nov. 28, 2000, after R began examining P's original tax return for 1996, P filed an amended Federal tax return for 1996 indicating to R that certain proceeds from the sale had been reinvested in qualified replacement property. On Oct. 17, 2001, R received a second…
1Opinion of the Court
Haines, Judge:
Respondent determined a deficiency of $395,279 in John W. Clause’s (Mr. Clause’s) Federal income tax for 1996. The issue for decision is whether Mr. Clause duly elected, under section 1042,1 to defer recognition of a gain that resulted from a sale of stock to an employee stock ownership plan (ESOP).
FINDINGS OF FACT
Mr. Clause was 74 years old when he testified at the trial of this case on June 4, 2003. Mr. Clause died on November 13, 2003, and his estate was substituted as petitioner by Order of the Court dated January 30, 2004. To avoid confusion, the decedent, Mr. Clause, will…
2Cases cited19 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- American Properties, Inc. v. CommissionerUnited States Tax Court · 1957
- Bond v. CommissionerUnited States Tax Court · 1993
- Pritchett v. CommissionerUnited States Tax Court · 1974
- E. Norman Peterson Marital Trust, Chemical Bank, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1996
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3Cited by16 opinions
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