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Retention Of Control Over Stock Constitutes "Ownership" Under Section 1239 Of The Internal Revenue Code-Harry Trotz, Michigan Law Review
Retention Of Control Over Stock Constitutes "Ownership" Under Section 1239 Of The Internal Revenue Code-Harry Trotz, Michigan Law Review
Michigan Law Review
Petitioner set up a corporation, retaining seventy-nine per cent of the stock and -distributing the remainder to a third party. The third party borrowed from petitioner, pledging his stock as security and executing an option agreement under which the petitioner could recover the stock at any time. Subsequently, the newly organized corporation purchased all the depreciable assets of petitioner's proprietorship at a price in excess of their adjusted basis; petitioner reported the difference as a capital gain. The Commissioner declared a deficiency, relying on section 1239 of the Internal Revenue Code, which treats as ordinary income the gain recognized from …
Trusts And Estates-Accumulations-Setting Aside Reserve For Depreciation On Trust Buildings, Hugh B. Muir
Trusts And Estates-Accumulations-Setting Aside Reserve For Depreciation On Trust Buildings, Hugh B. Muir
Michigan Law Review
Testator created a testamentary trust of several parcels of real property improved with apartment houses, authorizing the trustees to pay the net annual income therefrom to his sons in equal shares. The trust was to terminate when the youngest son attained the age of twenty-one, or, if he died before majority, when the second youngest son attained the age of thirty-seven, or sooner died. Remainder was to the testator's sons living at the termination date or their issue, per stirpes. Testator, while living, had maintained accounting records for the properties in such manner as to reflect an annual charge for …
Trusts - Investments - Amortization Of Bond Premium On Bond Callable Before Maturity, Anthony L. Dividio
Trusts - Investments - Amortization Of Bond Premium On Bond Callable Before Maturity, Anthony L. Dividio
Michigan Law Review
In 1929, the trustee, who was also beneficiary for life, invested $11,187.50 in bonds to mature in 1947, subject to prior call, worth $10,000 at par, which were called in and paid off October 1, 1936 at $10,500. Meanwhile, the trustee had amortized to the maturity date, setting aside one-eighteenth the amount of the premium out of interest annually, a total of $461.41, which, added to the $500 paid above par, left a balance of $226.09. In an accounting prior to her resignation in favor of a corporate trustee, held, amortization should have been to the call date and …