Howard v. Commissioner
United States Tax Court
Truax-Traer acquired 80.19 per cent of the only outstanding class of stock of Binkley for a part of its own voting stock and also acquired the remainder of the stock of Binkley and the stock of Pyramid, a subsidiary of Binkley, other than that owned by Binkley, for cash in a single transaction.
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Truax-Traer acquired 80.19 per cent of the only outstanding class of stock of Binkley for a part of its own voting stock and also acquired the remainder of the stock of Binkley and the stock of Pyramid, a subsidiary of Binkley, other than that owned by Binkley, for cash in a single transaction. Held, that the transaction did not constitute a nontaxable exchange under section 12 (b) (3), 1939 Code, to the extent that stock was exchanged for stock, since it did not qualify as a "reorganization" within the meaning of section 112 (g) (1) (B) which requires that such acquisition be solely for…
1Opinion of the Court
OPINION.
Fishee, Judge:
Respondent determined that the exchange here in issue is taxable under section 112 (a) of the Internal Revenue Code. Accordingly, he increased the various petitioners’ long-term capital gain for 1950 by the difference between their respective bases for the Binkley stock transferred and the fair market value of the Truax-Traer stock received. Shortly after the exchange, petitioners Hubert and Helen Howard sold a portion of the Truax-Traer stock they received in exchange for their Binkley stock. On the basis of his determination that the exchange was a taxable transaction,…
2Cases cited17 opinions
- Weiss v. StearnSupreme Court of the United States · 1924
- Helvering v. Tex-Penn Oil Co.Supreme Court of the United States · 1937
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Starr v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1936
- COMMISSION OF INT. REV. v. Air Reduction Co.Court of Appeals for the Second Circuit · 1942
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3Cited by12 opinions
- Zappo v. CommissionerUnited States Tax Court · 1983
- Arden S. Heverly and Sophia S. Heverly v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1980
- Eldon S. Chapman v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1980
- Reeves v. CommissionerUnited States Tax Court · 1979
- Bausch & Lomb Optical Co. v. CommissionerUnited States Tax Court · 1958
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