Connection lost
Server error
Garber Indus. Holding Co. v. Comm'r Case Brief
Why Top Law Students (And Those Aspiring to Be) Use LSD+ Briefs
Let's be real, law school is a marathon. Our exclusive Flash-to-Full case system is designed by Harvard Law School and MIT grads to match your pace: Quick summaries when you're slammed, detailed analysis when you need to go deep. Only LSD+ offers this kind of flexibility to genuinely fit your study flow.
Adaptive Case Views
Toggle between Flash, Standard, and Expanded. Get what you need, when you need it.
Exam-Ready IRAC Format
We deliver the precise structure professors look for in exam answers.
Complex Cases, Clarified
We break down dense legal reasoning into something digestible, helping you grasp core concepts.
Case Brief Summary & Legal Analysis
tl;dr: Two brothers exchanged a controlling interest in their family corporation. The Tax Court held that this triggered a penalty limiting the company’s tax losses because the brothers could not be treated as a single ‘family’ shareholder under the tax code, as their common parents were not shareholders.
Legal Significance: In a case of first impression, the court established that the family aggregation rule of I.R.C. § 382(l)(3)(A)(i) applies only from the perspective of an individual who is a shareholder, significantly narrowing the rule’s scope for intra-family stock transfers.
Garber Indus. Holding Co. v. Comm'r Law School Study Guide
Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.
Case Facts & Court Holding
Key Facts & Case Background
Petitioner, Garber Industries Holding Co., was a loss corporation with substantial net operating loss (NOL) carryovers. Its primary shareholders were two brothers, Charles and Kenneth Garber. Following a 1996 reorganization, Charles owned 19% of the corporation’s stock and Kenneth owned 65%. On April 1, 1998, Kenneth sold all of his shares to Charles, increasing Charles’s ownership stake from 19% to 84%. This transaction resulted in an ownership increase of 65 percentage points for Charles. At the time of the sale, the brothers’ parents were deceased and had never been shareholders in the corporation. The Commissioner of Internal Revenue determined that this stock sale constituted an “ownership change” under I.R.C. § 382, thereby triggering a limitation on the amount of pre-change NOLs petitioner could use in subsequent years. Petitioner challenged this determination, arguing that the family aggregation rule of § 382(l)(3)(A)(i) required the brothers to be treated as a single individual, meaning no ownership change occurred.
Court Holding & Legal Precedent
Issue: Does the family aggregation rule of I.R.C. § 382(l)(3)(A)(i) apply to treat two sibling shareholders as a single individual for purposes of determining an ownership change, when their common parents are not, and have never been, shareholders of the loss corporation?
Yes, the stock sale triggered an ownership change. The court held that Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
IRAC Legal Analysis
Complete IRAC Analysis for Higher Grades
IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.
Legal Issue
Does the family aggregation rule of I.R.C. § 382(l)(3)(A)(i) apply to treat two sibling shareholders as a single individual for purposes of determining an ownership change, when their common parents are not, and have never been, shareholders of the loss corporation?
Conclusion
This decision establishes a significant limiting principle on the § 382 family Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolo
Legal Rule
The family aggregation rule of I.R.C. § 382(l)(3)(A)(i), which treats an individual Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exerci
Legal Analysis
The court rejected the interpretations of both the petitioner and the respondent Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis
Flash-to-Full Case Opinions
Flash Summary
- Issue: Whether a stock sale between siblings, whose common parents are