Arctic Ice Machine Co. v. Commissioner
United States Board of Tax Appeals
In entering into a plan for the combination of several corporations, petitioner transferred all of its property to one of the companies, which immediately transferred back to petitioner all of its accounts and bills receivable. Such receivables amounted to about 32 per cent of all of petitioner's assets.
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In entering into a plan for the combination of several corporations, petitioner transferred all of its property to one of the companies, which immediately transferred back to petitioner all of its accounts and bills receivable. Such receivables amounted to about 32 per cent of all of petitioner's assets. Held that there was no actual transfer of the receivables; that the transfer of the remaining 68 per cent did not constitute "substantially all of its properties," and the transaction is accordingly not a nontaxable reorganization under section 203(h)(1) of the Revenue Act of 1926.
1Opinion of the Court
*1226OPINION.
Arundell:
There is no dispute in this case as to the amount of gain realized by petitioner on the exchange detailed in the findings of fact. The question is whether or not the transaction is of such kind that the gain is not recognized for tax purposes under section 203 of the Revenue Act of 1926. The material parts of this section are set out in footnote.1
*1227That income may be realized from an exchange of property for property, or a “ conversion ” as it is termed in Eisner v. Macomber, 252 U. S. 189, is well settled. See Insurance & Title Guarantee Co. v. Commissioner, 36 Fed. (2d) 842,…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. PhellisSupreme Court of the United States · 1921
- Southern Pacific Co. v. LoweSupreme Court of the United States · 1918
3Cited by14 opinions
- John G. Moffatt v. Commissioner of Internal Revenue, Mary E. Moffatt v. Commissioner of Internal Revenue, John G. Moffatt and Mary E. Moffatt v. Commissioner of Internal Revenue, Frank E. Nichol v. Commissioner of Internal Revenue, Ruth H. Nichol v. Commissioner of Internal Revenue, Frank E. Nichol and Ruth H. Nichol v. Commissioner of Internal Revenue, George C. Murray and Anna Mae Murray v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1966
- Dolomite, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
- Western Industries Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Moffatt v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1966
- Shaffer v. CommissionerUnited States Board of Tax Appeals · 1933
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