Ballwood Co. v. Commissioner
United States Board of Tax Appeals
Under an agreement entered into between Corporation A (the petitioner) and Corporation B, Corporation A caused to be organized Corporation C to which it transferred a part of its assets, approximately 29 percent, in exchange for all of Corporation C's capital stock. Thereupon, Corporation A transferred all of such capital stock to Corporation B in exchange for a part, approximately 18 percent, of its capital stock, which it distributed as a dividend to its sole stockholder.
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Under an agreement entered into between Corporation A (the petitioner) and Corporation B, Corporation A caused to be organized Corporation C to which it transferred a part of its assets, approximately 29 percent, in exchange for all of Corporation C's capital stock. Thereupon, Corporation A transferred all of such capital stock to Corporation B in exchange for a part, approximately 18 percent, of its capital stock, which it distributed as a dividend to its sole stockholder. Held, that the exchange by Corporation A of the stock of Corporation C for shares of stock of Corporation B did not…
1Opinion of the Court
*647OPINION.
Smith :
The respondent has determined that the exchange by the petitioner of all the capital stock of the Fabricating Co. for a portion of the capital stock of the Midwest Co. resulted in a taxable gain to the petitioner, measured by the difference between the cost to it of the Fabricating Co. stock and the fair market value of the shares of the Midwest Co. stock received in. exchange therefor. The petitioner contends that the exchange in question was a nontaxable exchange made pursuant to a plan of reorganization under section 112 (b) (3) of the Revenue Act of 1928.
*648The pertinent…
2Cases cited9 opinions
- United States v. PhellisSupreme Court of the United States · 1921
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Rockefeller v. United StatesSupreme Court of the United States · 1921
- Edison Sec. Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Humble v. St. JohnMontana Supreme Court · 1925
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3Cited by3 opinions
- United States v. Galveston-Houston Electric Co.Court of Appeals for the First Circuit · 1936
- Ballwood Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Lashar v. CommissionerUnited States Board of Tax Appeals · 1936