1244 Stock Essay
[97-2 USTC ¶50,905] Dennis R. Maze and Beatrice V. Maze, husband and wife, Plaintiffs v. United States of America, Defendant
U.S. District Court, Dist. Ore., Civ. 96-1000-JE, 10/10/97
[Code Secs. 1244 and 7402 ]
Summary judgment: Genuine issues of material fact: Capital gains and losses: Small business stock: Evidence.--The government was denied summary judgment on the issue of an individual’s entitlement to a …show more content…
Both parties filed concise statements of material fact pursuant to Local Rule 220-9(a) & (b). Pursuant to subsection (f) of that rule, material facts in the defendant’s concise statement that are not expressly controverted are deemed admitted.
In the spring of 1986, plaintiff Dennis Maze (“Maze”) became involved with Pacific Trailer Works, Inc., (“PTW”), a Washington corporation. Maze became involved by making an initial alleged investment of $30,000. Maze claims that he received 6,375 shares of stock for this alleged investment. At his deposition, Maze testified the share price was $4.72 for a total alleged investment of $27,000. Def. Exh. G, p. 13. Maze admitted at his deposition that the amount of money he thought he paid for stock was not reflected in the paperwork. Id. 2
In January of 1986, PTW’s board of directors adopted a section 1244 stock offer plan. Pl. Exh. 1. Defendant submitted a document called the “Corporate Record Sheet” from PTW which purportedly shows the