Ohio Cent. Tel. Co. v. Commissioner
United States Board of Tax Appeals
1. Where the nontaxable profit resulting from the sale of the stock of a subsidiary corporation is included in a lump sum received for such stock and the bonds of the same subsidiary, and there are no facts establishing the separate cost of the stock, the claim for the noninclusion of such profit in income is not sustained by evidence and the determination of the Commissioner that the entire profit is taxable must be approved. 2. Where a taxpayer corporation sells the bonds…
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1. Where the nontaxable profit resulting from the sale of the stock of a subsidiary corporation is included in a lump sum received for such stock and the bonds of the same subsidiary, and there are no facts establishing the separate cost of the stock, the claim for the noninclusion of such profit in income is not sustained by evidence and the determination of the Commissioner that the entire profit is taxable must be approved. 2. Where a taxpayer corporation sells the bonds of an affiliate, the whole amount of gain realized is taxable. United States v. Kirby Lumber Co.,284 U.S. 1, followed.
1Opinion of the Court
OHIO CENTRAL TELEPHONE COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT
Ohio Cent. Tel. Co. v. Commissioner
Docket No. 52723.
United States Board of Tax Appeals
28 B.T.A. 96; 1933 BTA LEXIS 1180;
May 16, 1933, Promulgated
1. Where the nontaxable profit resulting from the sale of the stock of a subsidiary corporation is included in a lump sum received for such stock and the bonds of the same subsidiary, and there are no facts establishing the separate cost of the stock, the claim for the noninclusion of such profit in income is not sustained by evidence and the determination of…
2Cases cited2 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Ohio Cent. Tel. Co. v. CommissionerUnited States Board of Tax Appeals · 1933