Taylor v. Commissioner
United States Board of Tax Appeals
1. REORGANIZATION - ASSUMPTION OF DEBT. - Where old bondholders exchanged past due bonds for new bonds of a new company in a reorganization under 77B of the Bankruptcy Act, the new company assumed the liability of the old within the meaning of section 112(g) of the Revenue Act of 1934, as amended by section 213 of the Revenue Act of 1939. 2. CAPITAL LOSS - SALE OR EXCHANGE. - Reconveyance of real estate by deed to mortgagees upon surrender of personal bonds and cancellation…
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1. REORGANIZATION - ASSUMPTION OF DEBT. - Where old bondholders exchanged past due bonds for new bonds of a new company in a reorganization under 77B of the Bankruptcy Act, the new company assumed the liability of the old within the meaning of section 112(g) of the Revenue Act of 1934, as amended by section 213 of the Revenue Act of 1939. 2. CAPITAL LOSS - SALE OR EXCHANGE. - Reconveyance of real estate by deed to mortgagees upon surrender of personal bonds and cancellation of remaining debt is a "sale or exchange" and the loss is a capital loss. 3. GAIN - YEAR REALIZED - CASH BASIS. - Where…
1Opinion of the Court
OPINION.
Murdock :
The Commissioner determined a deficiency of $3,785.47 in the income tax of these petitioners for the calendar year 1936. The Board adopts the stipulation of the parties as a part of its findings of fact.
The first issue is whether the exchange by Taylor in 1936 of 600 shares of Pressed Steel Car Co. 7 percent preferred stock for shares of stock and rights in the Pressed Steel Car Co., resulted in a recognized gain.
The Pressed Steel Car Co., hereinafter called the old company, was placed in the hands of receivers in 1933 after default on its 5 percent debenture bonds due in…
2Cases cited5 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Helvering v. HammelSupreme Court of the United States · 1941
- United States v. HendlerSupreme Court of the United States · 1938
- Electro-Chemical Engraving Co. v. CommissionerSupreme Court of the United States · 1941
3Cited by9 opinions
- Joyce v. CommissionerUnited States Tax Court · 1964
- Maine Steel, Inc. v. United StatesDistrict Court, D. Maine · 1959
- Joyce v. CommissionerUnited States Tax Court · 1964
- Motor Products Corp. v. CommissionerUnited States Board of Tax Appeals · 1942
- Pohlen v. CommissionerUnited States Tax Court · 1947
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