Bateman v. Commissioner
United States Tax Court
Upon the merger of two corporations, petitioner exchanged his common stock in one for common stock and common stock purchase warrants in the surviving corporation.
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Upon the merger of two corporations, petitioner exchanged his common stock in one for common stock and common stock purchase warrants in the surviving corporation. The merger was a tax-free reorganization within the provisions of section 368(a), I.R.C. 1954. Held: 1. The warrants were not stock within the meaning of section 354(a)(1), I.R.C. 1954, and therefore constituted "other property" within the meaning of section 356(a), I.R.C. 1954. 2. The exchange did not have the effect of the distribution of a dividend under the provisions of section 356(a)(2), I.R.C. 1954.
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined a deficiency in petitioners’ income tax for the calendar year 1958 in the amount of $11,212.36.
The issues for decision are:(1) Should gain to petitioners be recognized under the provisions of section 356(a)‘(l) of the Internal Revenue Code of 1954 to the extent of the fair market value of common stock purchase warrants of the Symington Wayne Corp. which were received by William H. Bateman in addition to common stock of that corporation in exchange for common stock of the Wayne Pump Co. upon its merger into Symington Wayne Corp.?(2)' Did the exchange…
2Cases cited12 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Palmer v. CommissionerSupreme Court of the United States · 1937
- Miles v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1922
- Commissioner v. Estate of BedfordSupreme Court of the United States · 1945
- Groman v. CommissionerSupreme Court of the United States · 1937
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3Cited by13 opinions
- Wilson v. CommissionerUnited States Tax Court · 1966
- Baan v. CommissionerUnited States Tax Court · 1969
- Baan v. CommissionerUnited States Tax Court · 1965
- Johnson v. CommissionerUnited States Tax Court · 1982
- Washburne v. CommissionerUnited States Tax Court · 1968
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