James H. Japhet - Page 2




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                                   James H. Japhet                                    
                              Year           Deficiency                               
                              1993           $13,636                                  
                          James H. Japhet Enterprises, Inc.                           
                         FYE Oct. 31         Deficiency                               
                              1993           $13,429                                  
               The sole issue for decision is whether the fair market value           
          of an apartment building petitioner James H. Japhet Enterprises,            
          Inc., sold to its sole shareholder, petitioner James H. Japhet,             
          on August 10, 1993, was $106,000, as petitioners contend;                   
          $139,900, as respondent contends; or some other amount.  We hold            
          that it was $106,000.  As a result of our holding, we conclude              
          that petitioner James H. Japhet did not receive a constructive              
          dividend in 1993 on the sale of the apartment building, and that            
          petitioner James H. Japhet Enterprises, Inc., recognized no gain            
          in fiscal year 1993 on that sale.                                           
               References to petitioner are to James H. Japhet.  References           
          to petitioner corporation are to James H. Japhet Enterprises,               
          Inc.  Section references are to the Internal Revenue Code in                
          effect during the year in issue.  Rule references are to the Tax            
          Court Rules of Practice and Procedure.                                      
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          A.   Petitioner and Petitioner Corporation                                  
               Petitioner resided in San Antonio, Texas, when he filed his            






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