Acampo Winery & Distilleries, Inc. v. Commissioner
United States Tax Court
1. Income -- Gain from Sale -- Who Was Seller. -- A sale of assets distributed in partial liquidation to trustees for stockholders was made for the stockholders and not for the corporation. 2. Inventories -- Addition to Income Based Upon a Reduction in Opening Inventory. -- No addition to income is proper where wines giving rise to a reduction in opening inventory were distributed in kind to stockholders during the year as a partial liquidation. 3. Deductions from Gross…
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1. Income -- Gain from Sale -- Who Was Seller. -- A sale of assets distributed in partial liquidation to trustees for stockholders was made for the stockholders and not for the corporation. 2. Inventories -- Addition to Income Based Upon a Reduction in Opening Inventory. -- No addition to income is proper where wines giving rise to a reduction in opening inventory were distributed in kind to stockholders during the year as a partial liquidation. 3. Deductions from Gross Income -- When Deductible. Distributions -- Mutual Associations -- Nonprofit. -- Amounts paid to obtain release of wine from…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner has taken an untenable position upon the main issue in this case. It is contrary to the stipulated facts and, as a consequence, is not supported by the cases upon which he relies. He contends that the trustees were “trustees in dissolution,” acting for and on behalf of the corporation to carry out its liquidation and dissolution, they effected the sale for the corporation, the latter realized the proceeds and is subject to the tax on the net gain. He states in support of this contention that the authority given the trustees was for the purpose of…
2Cases cited6 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
- Bazley v. CommissionerUnited States Tax Court · 1945
- Howell Turpentine Co. v. CommissionerUnited States Tax Court · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by46 opinions
- Weir Long Leaf Lumber Co. v. CommissionerUnited States Tax Court · 1947
- Joseph Weidenhoff, Inc. v. CommissionerUnited States Tax Court · 1959
- United States v. Cummins Distilleries CorporationCourt of Appeals for the Sixth Circuit · 1948
- Gorman Lumber Sales Co. v. CommissionerUnited States Tax Court · 1949
- Kaufmann v. CommissionerUnited States Tax Court · 1948
41 more not listed; retrieve them via the Exa API.