Ernst Kern Co. v. Commissioner
United States Tax Court
1. During the taxable year, pursuant to a plan for the readjustment of the obligations of the petitioner and the Kern Realty Corporation, the petitioner acquired leasehold estates of the realty company in business premises occupied by the petitioner; the defaulted first mortgage leasehold bonds of the realty company were canceled; the petitioner issued to the holders of such bonds debentures and shares of its preferred and common stock; the petitioner's indebtedness of $…
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1. During the taxable year, pursuant to a plan for the readjustment of the obligations of the petitioner and the Kern Realty Corporation, the petitioner acquired leasehold estates of the realty company in business premises occupied by the petitioner; the defaulted first mortgage leasehold bonds of the realty company were canceled; the petitioner issued to the holders of such bonds debentures and shares of its preferred and common stock; the petitioner's indebtedness of $ 80,000 to a bank was canceled; and the petitioner paid additional rent and interest on its debentures and dividends on its…
1Opinion of the Court
OPINION.
Tyson, Judge:
The various issues will be discussed in the order in which they have been stated.
I and II.
To its return for the fiscal year ended January 31, 1936, petitioner appended a memorandum entitled “Information Relating to Reorganization Consummated February 21, 1935,” stating therein that it believed the plan as’consummated qualified as a tax-free exchange under section 112 of the Revenue Act of 1934. A copy of the plan of readjustment was attached to the memorandum. Accordingly, in its return for the fiscal year ended January 31, 1936, petitioner reported no gain from the…
2Cases cited17 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Case v. Los Angeles Lumber Products Co.Supreme Court of the United States · 1939
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
12 more not listed; retrieve them via the Exa API.
3Cited by45 opinions
- Commissioner of Internal Revenue v. Philadelphia Transp. Co.Court of Appeals for the Third Circuit · 1949
- Gilken Corp. v. CommissionerUnited States Tax Court · 1948
- Pardee v. CommissionerUnited States Tax Court · 1967
- Bingham v. CommissionerUnited States Tax Court · 1943
- Gaddy v. CommissionerUnited States Tax Court · 1962
40 more not listed; retrieve them via the Exa API.