Whitney v. Commissioner
United States Tax Court
In the taxable year 1940, petitioners were members of the New York partnership of J. P. Morgan & Co. On March 29, 1940, under the Banking Law of New York, they organized a trust company in the name of "J. P. Morgan & Co. Incorporated." They acquired more than 72 per cent of its outstanding stock. On March 30, 1940, by bill of sale and agreement, the partnership transferred certain of its assets to the trust company.
Read the full summary
In the taxable year 1940, petitioners were members of the New York partnership of J. P. Morgan & Co. On March 29, 1940, under the Banking Law of New York, they organized a trust company in the name of "J. P. Morgan & Co. Incorporated." They acquired more than 72 per cent of its outstanding stock. On March 30, 1940, by bill of sale and agreement, the partnership transferred certain of its assets to the trust company. The latter assumed all the liabilities of the partnership and paid to it in cash the difference between the fair market value of the assets transferred and the liabilities…
1Opinion of the Court
OPINION.
Leech, Judge".
The primary issue, common to all petitioners, is whether the respondent properly denied to them any losses in the taxable year 1940 resulting from the sale of certain assets of the co-partnership of J. P. Morgan & Co. by virtue of the applicability of the provisions of section 24 (b) (1) (B) of the Internal Revenue Code.3 Petitioners concede that together they owned “more than 50 per centum * * * of the outstanding stock” of the trust company within the purview of section 24 (b) (2) (A) and (B), as added by section 301 of the Revenue Act of 1937.
On March 30, 1940, by an…
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- United States v. PhellisSupreme Court of the United States · 1921
- Blodgett v. SilbermanSupreme Court of the United States · 1928
- Case v. BeauregardSupreme Court of the United States · 1879
6 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Walnut Street Co. v. GlennDistrict Court, W.D. Kentucky · 1948
- Whitney v. CommissionerUnited States Tax Court · 1947