Atwood Grain & Supply Co. v. Commissioner
United States Tax Court
Petitioner was a patron in a farming cooperative which was merged with another cooperative. After the merger, petitioner exchanged participation certificates of the old cooperative for preferred stock in the merged cooperatives.
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Petitioner was a patron in a farming cooperative which was merged with another cooperative. After the merger, petitioner exchanged participation certificates of the old cooperative for preferred stock in the merged cooperatives. Held, the participation certificates constituted an equity interest in the cooperative not a debt, and any loss realized is not deductible as a bad debt under sec. 166(a) (2). Held, further: The exchange was not made pursuant to the merger of the cooperatives but was pursuant to a recapitalization which qualified as a nontaxable reorganization. Therefore, the loss…
1Opinion of the Court
Goffe, Judge:
Respondent determined deficiencies in petitioner’s Federal income tax as follows:
TYB June SO— 1964 _ 1965 _ 1966 _ 1967_ 1968 _ De/loienay $4, 043. 87 1, 266. 99 317. 90 2,128. 38 4,120.96
Petitioners have conceded the deficiencies determined for all of the taxable years involved except the taxable year ended June 80,1965. They have also conceded some adjustments made by the Commissioner to the taxable year ended June 30,1965.
The sole issue for decision is whether petitioner is entitled to deduct the sum of $5,262.96 as an ordinary loss or as a partially worthless debt, the…
2Cases cited16 opinions
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Rothensies v. Electric Storage Battery Co.Supreme Court of the United States · 1946
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Miele v. CommissionerUnited States Tax Court · 1971
- Long Poultry Farms, Incorporated v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
11 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Gold Kist v. CommissionerUnited States Tax Court · 1995
- Atwood Grain & Supply Co. v. CommissionerUnited States Tax Court · 1973
- Gold Kist v. CommissionerUnited States Tax Court · 1995