American Wire Fabrics Corp. v. Commissioner
United States Tax Court
The petitioner, a newly organized corporation, acquired ownership of the assets of American Wire Fabrics Company in 1922, at the same time that Wickwire Spencer Steel Corporation acquired complete stock ownership of petitioner. The various steps whereby these results were consummated were interdependent parts of an integrated transaction.
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The petitioner, a newly organized corporation, acquired ownership of the assets of American Wire Fabrics Company in 1922, at the same time that Wickwire Spencer Steel Corporation acquired complete stock ownership of petitioner. The various steps whereby these results were consummated were interdependent parts of an integrated transaction. Before the steps were entered into, the stockholders of American Wire Fabrics Company were in control of its assets; afterwards, Wickwire, which had no relation to the stockholders of the Company, was in control of the assets. Held: Petitioner did not…
1Opinion of the Court
OPINION.
HahRon, Judge:
The primary issue in this proceeding is whether the basis to petitioner of the assets which it acquired from its predecessor corporation in 1922 is the cost of the properties to petitioner, or whether the basis of the assets to petitioner is the same as the basis of the assets in the hands of the transferor. The determination of the proper basis is necessary in order to compute the depreciation deductions, losses on sale and abandonment of property, and the excess profits credit based on equity invested capital to which petitioner was entitled for the years 1941 and…
2Cases cited3 opinions
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- ACF-Brill Motors Co. v. CommissionerUnited States Tax Court · 1950
- Independent Oil Co. v. CommissionerUnited States Tax Court · 1946
3Cited by32 opinions
- King Enterprises, Inc. v. The United StatesUnited States Court of Claims · 1969
- Penrod v. CommissionerUnited States Tax Court · 1987
- The South Bay Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- Yoc Heating Corp. v. CommissionerUnited States Tax Court · 1973
- H. B. Zachry Co. v. CommissionerUnited States Tax Court · 1967
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