American Founders Corp. v. Commissioner
United States Board of Tax Appeals
Two of the petitioners, affiliated corporations, purchased stock of the parent and resold it at a price higher than the purchase price, but such stock dealings did not affect the affiliation. Held, that these transactions resulted in taxable gain. Commissioner v. Van Camp Packing Co., 67 Fed.(2d) 596, followed.
1Opinion of the Court
*1259OPINION.
McMahon:
The question presented for determination is whether the consolidated taxable income of the petitioners, affiliated corporations, for the fiscal year ended November 30, 1928, shotfid include any amount as profit derived by the General Corporation and the Office Building Corporation, from the sale by them in that year of preferred and common stock in the Founders Trust, which was the predecessor of the Founders Corporation as the parent of the affiliated group. The sale by the subsidiaries of stock of the parent had no effect upon the affiliation.
The petitioners contend that the…
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3Cited by2 opinions
- American Founders Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
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