Quimbee logo
DMCA.com Protection Status

Blake v. Commissioner

697 F.2d 473 (1982)

Case BriefRelatedOptions
From our private database of 35,600+ case briefs...

Blake v. Commissioner

United States Court of Appeals for the Second Circuit

697 F.2d 473 (1982)

Facts

S. Prestley Blake (plaintiff) was a cofounder of the Friendly Ice Cream Corporation (Friendly’s). Blake owned a yacht but wanted to get rid of it due to the expense and hassle of the upkeep. Blake agreed to donate the yacht to Kings Point Fund, Inc. (the fund), a charitable organization. Minutes from a meeting of the fund’s board of directors at which the donation was discussed stated that further negotiations regarding the donation were forthcoming. Soon after, Blake transferred 35,000 shares of Friendly’s stock to the fund. In Blake’s possession, the stock had an adjusted tax basis of $98. In the fund’s possession, the stock was worth $686,875. Upon receiving the stock, the fund sold it for over $700,000. A portion of those funds were then used to buy Blake’s yacht for $675,000. Soon after, the fund sold the yacht for $250,000. The Internal Revenue Service (IRS) (defendant) determined for tax purposes that the transactions would constitute a contribution of the yacht to the fund and a sale of the stock. Accordingly, the IRS assessed capital gains on Blake for the value above $98 he gained from the transactions. The United States Tax Court affirmed, holding that the transactions were linked and should be construed for tax purposes as a sale of the Friendly’s stock and a contribution of the yacht. Blake appealed.

Rule of Law

Issue

Holding and Reasoning (Oakes, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 620,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 620,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 620,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 35,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership