Carter Publications, Inc. v. Commissioner
United States Board of Tax Appeals
The petitioner, a newspaper corporation, purchased the circulation structure and part of the physical assets of a competing company for an agreed price based upon an appraisal of the assets taken over.
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The petitioner, a newspaper corporation, purchased the circulation structure and part of the physical assets of a competing company for an agreed price based upon an appraisal of the assets taken over. Prior to the transfer the selling corporation distributed all assets not included in the sales agreement to its president and sole stockholder, in liquidation of his stock, which was thereupon canceled and reissued, without consideration, to petitioner's president and four other stockholders, who took control and through proper corporate formalities completed the transfer as per agreement and…
1Opinion of the Court
*163OPINION.
Lansdon:
In this proceeding we are required to decide only a question of law. The petitioner contends that in the circumstances set out in our findings of fact it purchased certain of the physical *164assets of the Fort Worth Record Co. for $175,000 and, therefore, is entitled to compute gain or loss from the sale of such property and depreciation sustained in the use thereof on a cost basis of $175,000. The respondent has determined the transactions in question effected a reorganization as defined in section 203 (h) (1) of the Revenue Act of 1924 and therefore that the basis for computing…
2Cases cited5 opinions
- United States v. PhellisSupreme Court of the United States · 1921
- Weiss v. StearnSupreme Court of the United States · 1924
- Warner Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Taft v. CommissionerUnited States Board of Tax Appeals · 1933
- Mente & Co. v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by4 opinions
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- Tennessee, Alabama & Georgia Ry. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Carter Publications, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938