Becher v. Commissioner
United States Tax Court
The business of a corporation was wiped out by the termination of the war and the corporation began liquidating its assets. The majority of the stockholders decided to enter the upholstered furniture business. Instead of distributing all the assets, only $ 149,000 was distributed to the stockholders and $ 166,317.24 net was transferred to a new corporation which was formed to conduct the furniture business.
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The business of a corporation was wiped out by the termination of the war and the corporation began liquidating its assets. The majority of the stockholders decided to enter the upholstered furniture business. Instead of distributing all the assets, only $ 149,000 was distributed to the stockholders and $ 166,317.24 net was transferred to a new corporation which was formed to conduct the furniture business. The new corporation distributed its shares among the stockholders of the old corporation. The old corporation retained $ 482,585.25 to meet outstanding liabilities, after the payment of…
1Opinion of the Court
OPINION.
BRUCE, Judge:
The issues presented for decision require the determination of the nature of certain corporate distributions under sections 112 and 115 of the Internal Revenue Code. Sponge-Aire, a corporation, distributed $149,000 in cash to its stockholders, retained $482,585.25 to meet outstanding liabilities, and transferred $166,317.24 net to Chandler, a new corporation. Chandler distributed its shares among the stockholders of Sponge-Aire. Respondent determined that petitioners, as stockholders of Sponge-Aire, received the Chandler stock in a tax-free exchange within the purview of…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Estate of BedfordSupreme Court of the United States · 1945
- Cortland Specialty Co. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1932
- Lewis v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Zenz v. QuinlivanCourt of Appeals for the Sixth Circuit · 1954
9 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
- Wilson v. CommissionerUnited States Tax Court · 1966
- Atlas Tool Co. v. CommissionerUnited States Tax Court · 1978
- Laure v. CommissionerUnited States Tax Court · 1978
- Fowler Hosiery Co. v. CommissionerUnited States Tax Court · 1961
15 more not listed; retrieve them via the Exa API.