- 2 -
Section references are to the Internal Revenue Code in
effect for 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.
The stipulations of fact and the attached exhibits are
incorporated herein by this reference. At the time of the
petition, petitioners resided in St. Edward, Nebraska.
In 1992, the Company operated as a holding entity, owning
94.6 percent of 2,250 shares of stock outstanding in the Bank of
St. Edward (the Bank). The Bank served the financial needs of a
small agricultural community in Nebraska. Mr. Janda operated the
Bank in the capacity of president, while Mrs. Janda, involved as
well in the day-to-day activities of the Bank, served as vice
president. The Bank employed Kenneth Wolfe in the position of
“cashier” as well as three to four tellers. As of December 31,
1992, the stockholders’ equity in the Bank was listed at an
unadjusted book value of $4,518,000, or $2,008 per share.
In November 1992, petitioners each made gifts of 6,850
shares of stock in the Company (transferred block of stock) to
each of their children (Robert Janda, Donald Janda, Jr.,
Catherine Moeller, and Constance Janda). At the time of the
gifts, the Company had 130,000 shares of stock outstanding. Each
transferred block of stock therefore constituted a 5.27-percent
interest in the Company.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011