Haynes v. Commissioner
United States Tax Court
During period in which railroad corporation was in the process of reorganization, a partnership composed of petitioners purchased outstanding bonds of the corporation and entered into "when issued" contracts for the purchase and sale of new securities to be issued upon consummation of the reorganization.
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During period in which railroad corporation was in the process of reorganization, a partnership composed of petitioners purchased outstanding bonds of the corporation and entered into "when issued" contracts for the purchase and sale of new securities to be issued upon consummation of the reorganization. On the settlement date, the partnership satisfied its "when issued" sales contracts by simultaneously delivering its "when issued" purchase contracts plus new securities received in exchange for the old bonds. It was not possible to identify any particular securities sold with any particular…
1Opinion of the Court
OPINION.
RauM, Judge:
On the settlement date, July 24,1944, the partnership satisfied its “when issued” sales contracts in part by “when issued” purchase contracts and in part by the actual delivery of securities in the reorganized corporation which it had obtained in exchange for bonds of old corporation that it had previously purchased at various times and at various prices. Were it not for the capital gains and loss provisions, it would be a simple matter to determine the tax consequences of these transactions: it would be sufficient merely to subtract the cost of the various “when issued”…
2Cases cited16 opinions
- Helvering v. RankinSupreme Court of the United States · 1935
- Snyder v. CommissionerSupreme Court of the United States · 1935
- Towne v. McElligottDistrict Court, S.D. New York · 1921
- Helvering v. CampbellSupreme Court of the United States · 1941
- Skinner v. EatonCourt of Appeals for the Second Circuit · 1930
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3Cited by5 opinions
- Carborundum Co. v. CommissionerUnited States Tax Court · 1980
- American Home Products Corp. v. United StatesUnited States Court of Claims · 1979
- Joseph Gann, Inc. v. CommissionerUnited States Tax Court · 1982
- Carborundum Co. v. CommissionerUnited States Tax Court · 1980
- Haynes v. CommissionerUnited States Tax Court · 1951