Mittelman v. Commissioner
United States Tax Court
1. Taxpayer in 1940 transferred to X corporation all his stock in that corporation, plus a sum in cash, receiving in exchange therefor all the stock in Y and Z corporations, which had been owned by X. The stock received by X was not retired, but was carried on its books as treasury stock.
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1. Taxpayer in 1940 transferred to X corporation all his stock in that corporation, plus a sum in cash, receiving in exchange therefor all the stock in Y and Z corporations, which had been owned by X. The stock received by X was not retired, but was carried on its books as treasury stock. Held, the transaction was a "sale or exchange" of his stock by the taxpayer and his gain thereon is to be computed under section 117, Internal Revenue Code. 2. Taxpayer's basis for computing gain on the above transaction determined. 3. The contract for the sale of taxpayer's stock provided that, if any…
1Opinion of the Court
OPINION.
Van Fossan, Judge-.
The .first issue for our decision is whether the exchange by the petitioner in 1940 of 435 shares of class B stock of Michigan, plus a sum of money, for all the capital stock of New York and Delaware constituted a sale or exchange of capital assets or a distribution in partial liquidation. The petitioner contends that the transaction constituted a sale or exchange of capital assets and that under section 117 of the Internal Revenue Code, he is taxable upon only 50 percent of the gain arising therefrom. The respondent has determined that the transaction constituted a…
2Cases cited6 opinions
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. EubankSupreme Court of the United States · 1941
- Allport v. CommissionerUnited States Tax Court · 1944
- Britt v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1940
- Amelia H. Cohen Trust v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1941
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Mittelman v. CommissionerUnited States Tax Court · 1945