McLaulin v. Commissioner

115 T.C. 255 (2000)

Study Aids
Case Briefs Overview
Casebooks
Case Briefs
M
From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

McLaulin v. Commissioner

United States Tax Court
115 T.C. 255 (2000)

Facts

Ridge Pallets, Inc. was a Florida S corporation owned by three individuals: Douglas McLaulin (plaintiff), Augustus King, and Alfred Holland. Ridge Pallets and another individual, John Hutto, each owned 50 percent of the stock of Sunbelt Forest Products, Inc. (Sunbelt), also a Florida corporation. Ridge Pallets was the guarantor for Sunbelt’s loans but withdrew its guaranty and then purchased Sunbelt’s outstanding loan from the bank in order to control Sunbelt. Hutto and Ridge Pallets negotiated an agreement for the redemption of Hutto’s shares for $828,943.75 in cash and real estate valued at $101,000. Hutto paid capital gains taxes on this redemption. In order to fund the redemption, Sunbelt borrowed $900,000 from Ridge Pallets. Ridge Pallets then distributed, pro rata, all the shares of Sunbelt to its shareholders. The commissioner for the Internal Revenue Service (defendant) assessed tax against McLaulin for the distribution of Sunbelt shares to him by Ridge Pallets. McLaulin appealed to the United States Tax Court.

Rule of Law

Issue

Holding and Reasoning (Halpern, 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 810,000 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 810,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 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 810,000 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
  • 46,300 briefs - keyed to 988 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

Casebooks

Federal Income Tax

Key Terms