Diescher v. Commissioner
United States Board of Tax Appeals
1. INCOME. - Two of the petitioners, owners of certain inventions and patents, conveyed these, in the taxable year, to a newly organized corporation in exchange for 2,500 shares of stock in the corporation and $100,000 cash. This was done with the agreement by another corporation that it would purchase 3,000 shares of the new corporation's stock for $180,000 cash. This purchase was made. All of the 5,500 shares of stock were issued on the same day.
Read the full summary
1. INCOME. - Two of the petitioners, owners of certain inventions and patents, conveyed these, in the taxable year, to a newly organized corporation in exchange for 2,500 shares of stock in the corporation and $100,000 cash. This was done with the agreement by another corporation that it would purchase 3,000 shares of the new corporation's stock for $180,000 cash. This purchase was made. All of the 5,500 shares of stock were issued on the same day. Held that, as to petitioners, the transaction was not within section 112(b)(5) of the Revenue Act of 1932, nor within section 112(c)(1). Therefore…
1Opinion of the Court
*739OPINION.
Leech:
The parties are in accord that the fair market value of the patents, patent applications, and inventions transferred by the partnership on September 28,1932, to the Diescher Tube Mills, Inc., was $250,000 and that a consideration of that value was received upon the exchange, all of which constituted gain to the partnership. It is petitioners’ contention that the only portion of this gain, recognized as taxable to them, was the $100,000 received in cash, by the partnership. Revenue Act of 1932, sec. 112 (c) (1).1 They insist that the transaction between the partnership and the…
2Cases cited5 opinions
- Maryland Casualty Co. v. United StatesSupreme Court of the United States · 1920
- Crown Die & Tool Co. v. Nye Tool & MacHine WorksSupreme Court of the United States · 1923
- Tucker v. FergusonSupreme Court of the United States · 1875
- Ryan v. CarterSupreme Court of the United States · 1876
- Individual Drinking Cup Co. v. Osmun-Cook Co.District Court, D. New Jersey · 1915
3Cited by24 opinions
- Max A. Burde and Berthe C. Burde v. Commissioner of Internal Revenue, Bernard Weiss and Peggy S. Weiss v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- Lámar v. GrangerDistrict Court, W.D. Pennsylvania · 1951
- United States Mineral Products Co. v. CommissionerUnited States Tax Court · 1969
- Estate of Stahl v. Comm'rUnited States Tax Court · 1969
- Herwig v. United StatesUnited States Court of Claims · 1952
19 more not listed; retrieve them via the Exa API.