Whitney Realty Co. v. Commissioner
United States Board of Tax Appeals
Prior to its dissolution a corporation transferred its assets to one of its officers, who, by declaration of trust, agreed to hold the assets in trust, relieve them from liability by paying the corporate debts, and distribute the proceeds among the stockholders.
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Prior to its dissolution a corporation transferred its assets to one of its officers, who, by declaration of trust, agreed to hold the assets in trust, relieve them from liability by paying the corporate debts, and distribute the proceeds among the stockholders. Held, that there was no distribution in kind of the corporate assets upon an exchange by the stockholders of shares of stock for trust certificates, nor was there a transaction whereby gain or loss resulted to the stockholders from the exchange.
1Opinion of the Court
*463OPINION.
Adams:
The principal question raised by these proceedings is whether the conveyance of the assets of the Continental Lumber Co. to Nathan T. Yiger, as trustee, was a transfer of its assets, in complete liquidation of the lumber company, to its stockholders, so that the stockholders sustained a loss based on the difference between the fair market value of the property received and their capital investment. If the law question is decided in favor of the petitioners, a question of fact is presented as to the amount of loss sustained. We have included in our findings the facts relating to…
2Cases cited14 opinions
- Richmond v. IronsSupreme Court of the United States · 1887
- Fleckner v. President of the Bank of the United StatesSupreme Court of the United States · 1823
- Lafayette Trust Co. v. . BeggsNew York Court of Appeals · 1915
- Russel Wheel & Foundry Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Smith v. CommissionerUnited States Board of Tax Appeals · 1932
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3Cited by1 opinion
- Whitney Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933