Monson v. Commissioner
United States Tax Court
One of petitioners owned 381 shares of the 450 outstanding shares of a corporation engaged in the trucking business. The 69 outstanding shares not owned by petitioner were owned by his children. On July 30, 1976, the corporation redeemed 122 shares of the stock owned by petitioner for an amount equal to a price of $ 1,148.14 per share, all of which was paid to him in cash or property, and, on that same date, also redeemed the 69 shares owned by his children.
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One of petitioners owned 381 shares of the 450 outstanding shares of a corporation engaged in the trucking business. The 69 outstanding shares not owned by petitioner were owned by his children. On July 30, 1976, the corporation redeemed 122 shares of the stock owned by petitioner for an amount equal to a price of $ 1,148.14 per share, all of which was paid to him in cash or property, and, on that same date, also redeemed the 69 shares owned by his children. On Aug. 2, 1976, petitioner sold all of his remaining shares in the corporation to an unrelated individual for a price of $ 1,148.14 per…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency in petitioners’ income tax for the calendar year 1976 in the amount of $71,296. By amendment to his answer, respondent claimed on an alternative basis an increase in the deficiency determined to $87,236.
The issues for decision are: (1) Whether petitioners are entitled to report the gain on the sale by Mr. Monson of 259 shares of stock of Monson Truck Co. on an installment basis under section 453(h)2 when 3 days prior to the sale the corporation had redeemed 122 shares of Mr. Monson’s stock for an amount in excess of 30 percent of the selling…
2Cases cited16 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- Pritchett v. CommissionerUnited States Tax Court · 1974
- Rushing v. CommissionerUnited States Tax Court · 1969
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
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3Cited by10 opinions
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- Sallies v. CommissionerUnited States Tax Court · 1984
- Uniroyal, Inc. v. CommissionerUnited States Tax Court · 1993
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