- 18 -
T.T. Word Supply Co. v. Commissioner, 41 B.T.A. 965 (1940);
Olmsted v. Commissioner, supra. In order for complete
liquidation treatment to apply, it is not essential that a formal
plan of liquidation be adopted or that the corporation dissolve,
as long as there is a manifest intention to liquidate that is
carried out. Genecov v. United States, 412 F.2d 556 (5th Cir.
1969); Stamler v. Commissioner, 145 F.2d 37 (3d Cir. 1944), affg.
45 B.T.A. 37 (1941); Kennemer v. Commissioner, 96 F.2d 177, 178
(5th Cir. 1938), affg. 35 B.T.A. 415 (1937); Olmsted v.
Commissioner, supra; Silverman v. Commissioner, T.C. Memo. 1971-
143; see Bittker & Eustice, Federal Income Taxation of
Corporations & Shareholders, par. 10.02, at 10-9 (6th ed. 1994);
11 Mertens, Law of Federal Income Taxation, sec. 42.06, at 53
(1992 rev.).
Respondent maintains that petitioner has failed to provide
the necessary books and records to support his position regarding
the liquidation of WSAI. Although we agree with respondent that
there are gaps in the record, we believe that it contains
sufficient evidence to sustain our conclusion that WSAI was
liquidated in 1988. The intentions of petitioner and Ackerman to
liquidate WSAI at the end of 1988 were apparent from the sales of
WSAI’s assets, its cessation of business, and the agreement of
petitioner and Ackerman that WSAI would distribute the last two
condominium units to petitioner, in consideration of petitioner's
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011