Liberty Service Corp. v. Commissioner
United States Board of Tax Appeals
SALE - CORPORATION ASSETS - PROFIT TAXABLE TO SELLING CORPORATION. - After contracting to sell corporate stocks which it owned and which were at the time of the contract held by banks as collateral security for indebtedness of petitioner to them, petitioner corporation executed assignments of the stock to its stockholders, but no actual distribution of the stock was made to the stockholders.
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SALE - CORPORATION ASSETS - PROFIT TAXABLE TO SELLING CORPORATION. - After contracting to sell corporate stocks which it owned and which were at the time of the contract held by banks as collateral security for indebtedness of petitioner to them, petitioner corporation executed assignments of the stock to its stockholders, but no actual distribution of the stock was made to the stockholders. Held, that the profit resulting from the sale of the stock is taxable to petitioner, and that the efforts to consummate the transaction in such a manner as would result in no tax to the selling…
1Opinion of the Court
*1075OPINION.
Black:
Petitioner’s assignment of error is to the effect that the Commissioner of Internal Revenue has erroneously and improperly determined that the petitioner was the owner of the stoclc of the American Re-Insurance Co. at the date this stock was sold and that *1076consequently the deficiencies which have been determined upon that basis are wrong.
Respondent contends that the attempted distribution to the stockholders by petitioner of the stock in question was ineffectual and that consequently the profit from the sale of the stock is properly taxable to the petitioner. We think this…
2Cases cited4 opinions
- United States v. IshamSupreme Court of the United States · 1873
- Bullen v. State of WisconsinSupreme Court of the United States · 1918
- Nace Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Taylor Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by1 opinion
- Liberty Service Corp. v. CommissionerUnited States Board of Tax Appeals · 1933