Theodore F. Appleby and Marie W. Appleby v. Commissioner of Internal Revenue

296 F.2d 925, 9 A.F.T.R.2d (RIA) 372

Opinion

PER CURIAM.

The decisive fact issue here is whether petitioners have met the “active business” requirement of Section 355 of the Internal Revenue Code of 1954, 26 U.S.C.A. § 355 so as to have the distribution of the stock of the wholly owned subsidiary qualify as a non-taxable distribution. While the Tax Court decision could have gone the other way there is ample evidence in the record to support it; certainly we cannot say that it is clearly wrong.

The decision of the Tax Court, 35 T.C. 755, will be affirmed.