§331 Gain or loss to shareholder in corporate liquidations

LIMITED Don E. Kramer, Petitioner · 2001

tion that a de facto liquidation had occurred for Federal tax purposes: (1) Whether there is a manifest intention to liquidate; (2) whether - 9 - there is a continuing purpose to terminate corporate affairs and dissolve the corporation; and (3) whether the corporation’s activities are directed and confined to that purpose.

FOLLOWED R Ball for R Ball III by Appt, Petitioner T.C. Memo. 2013-39 · 2013

Petitioners' contention that section 331 governs all liquidations but section 332(a) exempts certain liquidations from creating income is erroneous.

Ethel Ball For R Ball III Apt 2/9/1967, Petitioner T.C. Memo. 2013-39 · 2013

Petitioners contend that any gain realized from a Qsub election constitutes income under section 331, but then section 332(a) exempts the realized gain from income with nonrecognition.

R Ball Jr. F/B/O R Ball III 12/22/1976, Petitioner T.C. Memo. 2013-39 · 2013

Petitioners contend that any gain realized from a Qsub election constitutes income under section 331, but then section 332(a) exempts the realized gain from income with nonrecognition.

R Ball Children Trust 9/9/1969, Petitioner T.C. Memo. 2013-39 · 2013

Petitioners contend that any gain realized from a Qsub election constitutes income under section 331, but then section 332(a) exempts the realized gain from income with nonrecognition.

Ethel Ball For A L Ball AS Appt, Petitioner T.C. Memo. 2013-39 · 2013

Petitioners contend that any gain realized from a Qsub election constitutes income under section 331, but then section 332(a) exempts the realized gain from income with nonrecognition.

Frank Sawyer Trust v. Commissioner 133 T.C. 60 · 2009

Instead, by involving Fortrend, the trust would sell the stock of the corporation (holding $1 million cash) for $825,000. The trust would receive $175,000 (half of the corporation’s tax liability) more than if it had liquidated the corporation. The $175,000 excess of cash in the corporation ($1 million) over the amount paid by Fortrend ($

Jerry S. Payne, Petitioner T.C. Memo. 2003-90 · 2003

The issue of law is whether 2618's transfer of the club to JKP, in November 1990, constituted a taxable liquidation of 2618, under section 331, or a tax-free reorganization under section 368(a)(1)(D) and/or (F).

Nashat Khalaf, Petitioner T.C. Memo. 1999-74 · 1999

OPINION Nature of Transaction Respondent treats the September 15, 1992, transfer of jewelry inventory from Al Zuni to Khalaf as a distribution under - 9 - section 331 in complete liquidation of Al Zuni, which treatment petitioners do not seriously challenge.

Paul A. & Janet Mae Rendina, Petitioner T.C. Memo. 1996-392 · 1996

Neither the Code nor the regulations to section 331 define the term “complete liquidation.” However, as we noted in Olmsted v.

Charles J. Dugan, Petitioner T.C. Memo. 1996-155 · 1996

Under section 331, amounts distributed in complete liquidation of a corporation shall be treated as full payment in - 21 - exchange for the stock. Sec. 331(a).9 The exchange generally is treated as a disposition. Secs. 331(c), 1001. Under section 334(a), the basis of property received in a complete liquidation in which gain or loss is recognized by the

Kathleen M. Stegman, Petitioner T.C. Memo. 2024-32 · 2024

§ 331 for receiving in interstate commerce and causing the receipt in interstate commerce of a misbranded drug and delivering and proffering the misbranded drug for pay with the intent to defraud and mislead. 6 [*6] Ms. Stegman was a director and the majority shareholder for all the years Midwest Medical filed with the Kansas secretary of state. S

Stanley Battat & Zmira Battat, Petitioners · 2017

-5- there are grounds for removal ofa Tax Court Judge under section 7443(f), then the Judicial Conference shall transmit the determination to the President. See Part B, infra p. 22. B. Statutory Provisions Relating to the Establishment and Status ofthe Tax Court 1. 1924 to 1968 Congress created the Board ofTax Appeals in 1924 to p

Julia R. Swords Trust, Transferee, Margaret R. Mackell, Dorothy R. Brotherton, and Julia R. Swords, Co-Trustees, Petitioners · 2014

Liquidation and Other Post-Closing Transactions By documents dated February 15, 2001, Mr. Kramer, acting on behalfof Alrey Trust, and Mr. Austin, acting as director ofDavreyn, resolved that Davreyn - 20 - be completely liquidated in accordance with section 331. In an attachedplan of liquidation Mr. Austin provided that Davreyn would distribute all ofits assets to Alrey Trust in redemption and cancellation ofall ofthe outstanding Davreyn stock. Further, on February 15, 2001, Mr. Austin authorized

David P. Reynolds Trust, Transferee, Margaret R. Mackell, Dorothy R. Brotherton, and Julia R. Swords, Co-Trustees, Petitioners · 2014

Liquidation and Other Post-Closing Transactions By documents dated February 15, 2001, Mr. Kramer, acting on behalfof Alrey Trust, and Mr. Austin, acting as director ofDavreyn, resolved that Davreyn - 20 - be completely liquidated in accordance with section 331. In an attachedplan of liquidation Mr. Austin provided that Davreyn would distribute all ofits assets to Alrey Trust in redemption and cancellation ofall ofthe outstanding Davreyn stock. Further, on February 15, 2001, Mr. Austin authorized

Margaret R. Mackell Trust, Transferee, Margaret R. Mackell, Dorothy R. Brotherton, and Julia R. Swords, Co-Trustees, Petitioners · 2014

Liquidation and Other Post-Closing Transactions By documents dated February 15, 2001, Mr. Kramer, acting on behalfof Alrey Trust, and Mr. Austin, acting as director ofDavreyn, resolved that Davreyn - 20 - be completely liquidated in accordance with section 331. In an attachedplan of liquidation Mr. Austin provided that Davreyn would distribute all ofits assets to Alrey Trust in redemption and cancellation ofall ofthe outstanding Davreyn stock. Further, on February 15, 2001, Mr. Austin authorized

Dorothy R. Brotherton Trust, Transferee, Margaret R. Mackell, Dorothy R. Brotherton, and Julia R. Swords, Co-Trustees, Petitioners · 2014

Liquidation and Other Post-Closing Transactions By documents dated February 15, 2001, Mr. Kramer, acting on behalfof Alrey Trust, and Mr. Austin, acting as director ofDavreyn, resolved that Davreyn - 20 - be completely liquidated in accordance with section 331. In an attachedplan of liquidation Mr. Austin provided that Davreyn would distribute all ofits assets to Alrey Trust in redemption and cancellation ofall ofthe outstanding Davreyn stock. Further, on February 15, 2001, Mr. Austin authorized

Swords Trust v. Commissioner 142 T.C. 317 · 2014

eyn’s Liquidation and Other Post-Closing Transactions By documents dated February 15, 2001, Mr. Kramer, acting on behalf of Alrey Trust, and Mr. Austin, acting as director of Davreyn, resolved that Davreyn be completely liquidated in accordance with section 331. In an attached plan of liquidation Mr. Austin provided that Davreyn would distribute all of its assets to Alrey Trust in redemption and cancellation of all of the outstanding Davreyn stock. Further, on February 15, 2001, Mr. Austin autho

Glory Allen, Petitioner T.C. Memo. 2005-118 · 2005

331 (2000), and because of an explicit exemption in the General Allotment Act of 1887, the Supreme Court - 6 - held that the taxpayers were not taxable on income received as the result of the sale of timber located on the trust lands. In Cross v. Commissioner, 83 T.C. 561 (1984), affd. sub nom. Dillon v. United States, 792 F.2d 849 (9th Cir.

Charles & Beatrice M. Reynolds, Petitioner T.C. Memo. 2000-20 · 2000

ute arose, and "all facts pertaining to the controversy." Id. (citing Morgan's Estate v. Commissioner, 332 F.2d 144, 151 (5th Cir. 1964)); see Barr v. Commissioner, T.C. Memo. 1989-420. • According to 6 Administration, Internal Revenue Manual (CCH) sec. 331.1, at 38,063, Inspection's purpose in conducting investigations of allegations against employees of the Internal - 22 - Revenue Service is to determine facts and to report them to management for a decision as to "whether the employee is suita

Joe T. & Linda R. Kieffer, Petitioner T.C. Memo. 1998-202 · 1998

331-358 (1998) for income that an individual Indian allottee derives directly from the land held in trust for him. The Court reasoned that there existed a congressional intent to exempt allotted lands from all charges and encumbrances until after the fee interest was conveyed to the individual allottee. It held that income received by a noncom

Joseph Baldwin Campbell, Petitioner T.C. Memo. 1997-502 · 1997

331-358 (1988) provides such an express exception to Federal 6 income taxation. The Indian General Allotment Act provided for the allotment of reservation lands to American Indians to be held in trust for allottees by the United States for a period of 25 years, or longer, during which time the allotted land cannot be alienated or encumbered. U

Earle E. Murphy, Petitioner T.C. Memo. 1996-59 · 1996

The terms "liquidation" or "complete liquidation" are not defined in section 331 or in the regulations thereunder.

Ramiro Enrique Rojas v. Attorney General United States 728 F.3d 203 · Cir.

United States v. Austin DeCoster 828 F.3d 626 · Cir.

Confederated Tribes & Bands of the Yakama Indian Nation v. Alcohol & Tobacco Tax & Trade Bureau 843 F.3d 810 · Cir.

Yakama Indian Nation v. Alcohol & Tobacco Tax & Trade · Cir.

Shelton v. Commissioner 105 T.C. 114 · 1995

Klein v. Commissioner 75 T.C. 298 · 1980

Braddock Land Co. v. Commissioner 75 T.C. 324 · 1980

Gerli & Co. v. Commissioner 73 T.C. 1019 · 1980

Atlas Tool Co. v. Commissioner 70 T.C. 86 · 1978

Estate of Lammerts v. Commissioner 54 T.C. 420 · 1970

American Manufacturing Co. v. Commissioner 55 T.C. 204 · 1970

Wilson v. Commissioner 46 T.C. 334 · 1966

R Ball for R Ball III by Appt v. Commissioner of IRS 742 F.3d 552 · Cir.

Brown & Williamson v. FDA · Cir.

Karmun v. Commissioner 82 T.C. 201 · 1984

Byrd v. Commissioner 87 T.C. 830 · 1986

Wynecoop v. Commissioner 76 T.C. 101 · 1981

Estate of Smith v. Commissioner 63 T.C. 722 · 1975

Buff v. Commissioner 58 T.C. 224 · 1972

Schmidt v. Commissioner 55 T.C. 335 · 1970

Ivey v. Commissioner 52 T.C. 76 · 1969

Guintoli v. Commissioner 53 T.C. 174 · 1969

Lansing Broadcasting Co. v. Commissioner 52 T.C. 299 · 1969

United States v. Richard Marschall 82 F.4th 774 · Cir.

Sundstrand Corp. v. Commissioner 98 T.C. 518 · 1992

Philip Morris Inc. v. Commissioner 96 T.C. 606 · 1991

Rickard v. Commissioner 88 T.C. 188 · 1987

Rotolo v. Commissioner 88 T.C. 1500 · 1987

New Mexico Timber Co. v. Commissioner 84 T.C. 1290 · 1985

Cross v. Commissioner 83 T.C. 561 · 1984

Vickers v. Commissioner 80 T.C. 394 · 1983

Edward L. Stephenson Trust v. Commissioner 81 T.C. 283 · 1983

Hoptowit v. Commissioner 78 T.C. 137 · 1982

Earl v. Commissioner 78 T.C. 1014 · 1982

Kast v. Commissioner 78 T.C. 1154 · 1982

Felmann v. Commissioner 77 T.C. 564 · 1981

Jourdain v. Commissioner 71 T.C. 980 · 1979

Davenport v. Commissioner 70 T.C. 922 · 1978

Cocker v. Commissioner 68 T.C. 544 · 1977

Winn v. Commissioner 67 T.C. 499 · 1976

Prescott v. Commissioner 66 T.C. 128 · 1976

George L. Riggs, Inc. v. Commissioner 64 T.C. 474 · 1975

Opine Timber Co. v. Commissioner 64 T.C. 700 · 1975

Bellin v. Commissioner 65 T.C. 676 · 1975

Greenberg v. Commissioner 62 T.C. 331 · 1974

Telephone Answering Service Co. v. Commissioner 63 T.C. 423 · 1974

Reitz v. Commissioner 61 T.C. 443 · 1974

Mele v. Commissioner 61 T.C. 358 · 1973

Madison Square Garden Corp. v. Commissioner 58 T.C. 619 · 1972

International Trading Co. v. Commissioner 57 T.C. 455 · 1971

Leisure Time Enterprises, Inc. v. Commissioner 56 T.C. 1180 · 1971

Kind v. Commissioner 54 T.C. 600 · 1970

Brundage v. Commissioner 54 T.C. 1468 · 1970

Jos. K., Inc. v. Commissioner 51 T.C. 584 · 1969

Rushing v. Commissioner 52 T.C. 888 · 1969

South Texas Rice Warehouse Co. v. Commissioner 43 T.C. 540 · 1965

Estate of Miller v. Commissioner 43 T.C. 760 · 1965

Smith Leasing Co. v. Commissioner 43 T.C. 37 · 1964

James Armour, Inc. v. Commissioner 43 T.C. 295 · 1964

Alameda Realty Corp. v. Commissioner 42 T.C. 273 · 1964

Waller v. Commissioner 39 T.C. 665 · 1963

Stevens Bros. Foundation, Inc. v. Commissioner 39 T.C. 93 · 1962

Gallagher v. Commissioner 39 T.C. 144 · 1962

Alvord v. Commissioner 32 T.C. 1 · 1959

Estate of Denzer v. Commissioner 29 T.C. 237 · 1957

Marsman v. Commissioner 18 T.C. 1 · 1952

Estate of Hanch v. Commissioner 19 T.C. 65 · 1952

Whitney v. Commissioner 8 T.C. 1019 · 1947

Coates v. Commissioner 7 T.C. 125 · 1946

Mason v. Commissioner 3 T.C. 1087 · 1944

Floyd v. Commissioner 2 T.C. 744 · 1943

United States v. Gonsalves 435 F.3d 64 · Cir.

Lisa Folajtar v. Attorney General USA 980 F.3d 897 · Cir.

United States v. Gas Pipe 997 F.3d 231 · Cir.

Mayo Clinic v. United States 997 F.3d 789 · Cir.

New York v. Yellen 15 F.4th 569 · Cir.

Nutritional Health Alliance v. Food & Drug Administration 318 F.3d 92 · Cir.

Nutritional Health Alliance v. Food And Drug Administration 318 F.3d 92 · Cir.

Majestic Star Casino, LLC v. Barden Development, Inc. 716 F.3d 736 · Cir.

§331 — Gain or loss to shareholder in corporate liquidations

102 Citing Cases