Turnbow v. Commissioner
United States Tax Court
Petitioner, who owned all of the stock of Supply, exchanged all of such stock for shares of stock of Foremost Dairies, Inc., and $ 3,000,000. He reported gain limited to $ 3,000,000, less expenses, under section 112(c)(1), 1939 Code. Respondent determined that gain in excess of $ 3,000,000 was taxable because section 112(c)(1) was not applicable.
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Petitioner, who owned all of the stock of Supply, exchanged all of such stock for shares of stock of Foremost Dairies, Inc., and $ 3,000,000. He reported gain limited to $ 3,000,000, less expenses, under section 112(c)(1), 1939 Code. Respondent determined that gain in excess of $ 3,000,000 was taxable because section 112(c)(1) was not applicable. Held, the provisions of section 112(c)(1) are applicable and petitioner's gain is recognized but only in an amount which does not exceed the cash payment.
1Opinion of the Court
Grover D. Turnbow and Ruth H. Turnbow, Petitioners, v. Commissioner of Internal Revenue, Respondent
Turnbow v. Commissioner
Docket No. 69429
United States Tax Court
32 T.C. 646; 1959 U.S. Tax Ct. LEXIS 148;
June 12, 1959, Filed
Decision will be entered under Rule 50.
Petitioner, who owned all of the stock of Supply, exchanged all of such stock for shares of stock of Foremost Dairies, Inc., and $ 3,000,000. He reported gain limited to $ 3,000,000, less expenses, under section 112(c)(1), 1939 Code. Respondent determined that gain in excess of $ 3,000,000 was taxable because section 112(c)(1) was not…
2Cases cited1 opinion
- Turnbow v. CommissionerUnited States Tax Court · 1959