Joseph E. Seagram & Sons, Inc. v. Commissioner
United States Tax Court
Corporation A, in order to withdraw from business in Kentucky, contributed its Kentucky assets, including its inventories of liquor, to its Kentucky subsidiary, corporation B. Both corporations used the last-in, first-out method of inventorying goods, maintaining the inventories in layers consisting of acquisitions by month.
Read the full summary
Corporation A, in order to withdraw from business in Kentucky, contributed its Kentucky assets, including its inventories of liquor, to its Kentucky subsidiary, corporation B. Both corporations used the last-in, first-out method of inventorying goods, maintaining the inventories in layers consisting of acquisitions by month. Held, that corporation B "acquired" the contributed inventories, within the meaning of section 472(b), I.R.C. 1954, at the time of contribution, rather than at the times they were acquired by corporation A, and that it is not required, as determined by the respondent, to…
1Opinion of the Court
Atkins, Judge:
The respondent determined that petitioner is liable, as transferee of assets of the Calvert Distilling Co. (successor by-merger to Julius Kessler Distilling Co., Inc.), for a deficiency in income tax for the taxable year ended July 31, 1959, in the amount of $360,466.80. The petitioner concedes that it is liable as transferee for any deficiency properly -due, but contests the amount of the deficiency. The only issue for decision is whether liquor inventories which petitioner transferred to its subsidiary, Julius Kessler Distilling Co., Inc., in 1957 as a contribution to capital,…
2Cases cited6 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
- National Investors Corporation v. HoeyCourt of Appeals for the Second Circuit · 1944
1 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Prabel v. CommissionerUnited States Tax Court · 1988
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
- Thor Power Tool Co. v. CommissionerUnited States Tax Court · 1975
- All-Steel Equipment, Inc. v. CommissionerUnited States Tax Court · 1970
- Hospital Corp. of Am. v. CommissionerUnited States Tax Court · 1996
11 more not listed; retrieve them via the Exa API.