Resorts International, Inc. v. Commissioner
United States Tax Court
1. The petitioner acquired the stock of certain corporations operating retail paint stores through a statutory merger with the parent corporation. Subsequently, but in a related transaction, the petitioner acquired all the assets of the subsidiary corporations in exchange for such stock. Held: For purposes of the net operating loss carryover provisions of secs. 381 and 382, the statutory merger and subsequent liquidations must be considered together.
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1. The petitioner acquired the stock of certain corporations operating retail paint stores through a statutory merger with the parent corporation. Subsequently, but in a related transaction, the petitioner acquired all the assets of the subsidiary corporations in exchange for such stock. Held: For purposes of the net operating loss carryover provisions of secs. 381 and 382, the statutory merger and subsequent liquidations must be considered together. The assets of the subsidiary corporations were acquired pursuant to a reorganization as defined in sec. 368(a)(1)(C) and the net operating loss…
1Opinion of the Court
Quealt, Judge:
The respondent determined deficiencies in the income tax of petitioner as follows:
'Year Deficiency
1962 -$44, 885
1963 - 53,764
1964_ 987
1965 _ 25,288
The principal questions involved relate to the characterization of certain transactions whereby the petitioner acquired the stock of various subsidiary corporations which were thereupon liquidated and the businesses thereof taken over by the petitioner. The questions presented as a result of said transactions are:(1) Whether the net operating loss carryovers of the former subsidiaries of the Victor Paint Co., otherwise available to…
2Cases cited16 opinions
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- Cheff v. MathesSupreme Court of Delaware · 1964
- Bennett v. ProppSupreme Court of Delaware · 1962
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3Cited by8 opinions
- Superior Coach of Florida, Inc. v. CommissionerUnited States Tax Court · 1983
- Resorts International, Inc., Petitioner-Appellant-Cross-Appellee v. Commissioner of Internal Revenue, Respondent-Appellee-Cross-AppellantCourt of Appeals for the Fifth Circuit · 1975
- Texas Instruments v. CommissionerUnited States Tax Court · 1992
- Bercy Industries, Inc. v. CommissionerUnited States Tax Court · 1978
- Bercy Industries, Inc. v. CommissionerUnited States Tax Court · 1978
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