Delk v. Commissioner
United States Tax Court
Under a plan of reorganization of X Corp. pursuant to chapter 11 of the U.S. Bankruptcy Code, the old shares of common stock were canceled and new shares of common stock were allocated exclusively to, and purchased by, holders of the old shares. Held, the cancellation of the old shares does not, in and of itself, make such shares worthless under sec. 165(g), I.R.C., but is simply one element to be taken into account in determining such worthlessness.
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Under a plan of reorganization of X Corp. pursuant to chapter 11 of the U.S. Bankruptcy Code, the old shares of common stock were canceled and new shares of common stock were allocated exclusively to, and purchased by, holders of the old shares. Held, the cancellation of the old shares does not, in and of itself, make such shares worthless under sec. 165(g), I.R.C., but is simply one element to be taken into account in determining such worthlessness. Held further, based upon all the facts and circumstances, the old shares did not become worthless because the X Corp. had a potential future…
1Opinion of the Court
MICHAEL W. DELK AND MARY M. DELK, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent; ROBERT W. DELK AND DOROTHY A. DELK, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Delk v. Commissioner
Docket Nos. 20674-92, 11340-93
United States Tax Court
T.C. Memo 1995-265; 1995 Tax Ct. Memo LEXIS 269; 69 T.C.M. (CCH) 2908;
June 15, 1995, Filed
Decision will be entered under Rule 155.
Under a plan of reorganization of X Corp. pursuant to chapter 11 of the U.S. Bankruptcy Code, the old shares of common stock were canceled and new shares of common stock were allocated exclusively to, and…
2Cases cited22 opinions
- Boehm v. CommissionerSupreme Court of the United States · 1945
- Morton v. CommissionerUnited States Board of Tax Appeals · 1938
- Borchers v. CommissionerUnited States Tax Court · 1990
- Richard J. Borchers Jane E. Borchers v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1991
- Morton v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
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