Hayden v. Commissioner
United States Tax Court
Held: 1. That the plan adopted by Spectacular Shows, Inc., on May 21, 1960, meets all the requirements of sec. 1244(c)(1)(A), I.R.C. 1954, and regulations thereto. 2. That the preincorporation subscriptions of petitioners were accepted on May 19, 1960, the date of incorporation, and the stock therefrom, accordingly, did not issue pursuant to the adopted plan of May 21, 1960. 3. The first 5,000 shares of stock paid for after the adoption of the plan, 5,000 shares being the…
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Held: 1. That the plan adopted by Spectacular Shows, Inc., on May 21, 1960, meets all the requirements of sec. 1244(c)(1)(A), I.R.C. 1954, and regulations thereto. 2. That the preincorporation subscriptions of petitioners were accepted on May 19, 1960, the date of incorporation, and the stock therefrom, accordingly, did not issue pursuant to the adopted plan of May 21, 1960. 3. The first 5,000 shares of stock paid for after the adoption of the plan, 5,000 shares being the maximum limit thereunder, were issued pursuant to such plan and qualify for ordinary-loss treatment under sec. 1244. 4.…
1Opinion of the Court
OPINION
The initial issue presented for decision is whether Spectacular Shows, Inc., adopted a plan meeting the requirements of section 1244(c) (1) (A) and the underlying regulations thereto. If that issue is determined in the affirmative, we must further decide whether all or any part of the stock issued to petitioners by Spectacular Shows, Inc., was issued pursuant to such plan. There is no question as to the other statutory requirements with respect to section 1244 stock.
Section 1244, the pertinent portions of which are set forth in the footnote below,4 was enacted to encourage the flow of…
2Cases cited9 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Morgan v. CommissionerUnited States Tax Court · 1966
- Godart v. CommissionerUnited States Tax Court · 1969
- Spiegel v. CommissionerUnited States Tax Court · 1968
- Marsh v. CommissionerUnited States Tax Court · 1949
4 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Anthony Theophilos Patricia A. Theophilos v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1996
- Rath v. CommissionerUnited States Tax Court · 1993
- Mogab v. CommissionerUnited States Tax Court · 1978
- Reddy v. CommissionerUnited States Tax Court · 1976
- Theophilos v. CommissionerUnited States Tax Court · 1994
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