- 13 - about October 14, 1988, pursuant to a consent of the sole director of DC Acquisition to a resolution stating the terms of the merger, dated October 12, 1988. AHC thereupon became a subsidiary of CDI. Sybil Ferguson became president of AHC, and Roger Ferguson became a consultant for AHC. In addition, Roger and Sybil Ferguson became members of AHC's executive committee and CDI's board of directors. OPINION I. Introduction A. Issue Petitioners donated appreciated stock in American Health Companies, Inc. (AHC), to the Church of Jesus Christ of the Latter Day Saints (the Church), the Michael Ferguson Charitable Foundation, and the Roger and Sybil Charitable Foundation (collectively, the Charities). The Charities subsequently sold that stock to DC Acquisition Corp. (DC Acquisition) pursuant to a tender offer. The sole issue for decision is whether petitioners are taxable on the gain in the stock transferred to the Charities under the anticipatory assignment of income doctrine. Petitioners bear the burden of proof. Rule 142(a). B. Arguments of the Parties Petitioners contend that they are not taxable on the gain in the stock transferred to the Charities. First, relying on our decision in Palmer v. Commissioner, 62 T.C. 684 (1974), affd. onPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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