J. S. Rippel & Co. v. Commissioner
United States Board of Tax Appeals
Where A corporation acquired in excess of 60 percent of the outstanding capital stock of B corporation for cash and bonds, and the latter corporation was not dissolved but continued to operate its business without modification in any way, held, there was no reorganization within the meaning of section 203(h)(1) of the Revenue Act of 1926. Held, further, the gain derived by the petitioner upon the exchange of its stock in B corporation for cash and bonds of A corporation is…
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Where A corporation acquired in excess of 60 percent of the outstanding capital stock of B corporation for cash and bonds, and the latter corporation was not dissolved but continued to operate its business without modification in any way, held, there was no reorganization within the meaning of section 203(h)(1) of the Revenue Act of 1926. Held, further, the gain derived by the petitioner upon the exchange of its stock in B corporation for cash and bonds of A corporation is recognizable for tax purposes to the extent of both the cash and the bonds so received.
1Opinion of the Court
*1148OPINION.
Teammell:
The petitioner’s contention is that the exchange by the petitioner and other stockholders of the Southern California Gas Co., and the Midway Gas Co., both California corporations, of a majority of the voting capital stock of those corporations for cash and bonds of the Southern California Gas Corporation, a Delaware corporation, organized for that purpose, was a merger or consolidation, or something in the nature thereof, and as such constituted a reorganization within the provisions of section 203 (h) (1) of the Revenue Act of 1926; that as a result of such reorganization…
2Cases cited4 opinions
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Minnesota Tea Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Watts v. CommissionerUnited States Board of Tax Appeals · 1933
- C. H. Mead Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by1 opinion
- J. S. Rippel & Co. v. CommissionerUnited States Board of Tax Appeals · 1934