Southern Power & Mfg. Co. v. Commissioner
United States Board of Tax Appeals
The petitioner acquired certain assets by the issue of its stock to three prior owners thereof in exact proportions to their interests therein. Held, that the basis for determining gain or loss on the subsequent sale of all its assets is cost to such prior owners, plus any capital addition after acquisition.
1Opinion of the Court
*630OPINION.
Lansdon :
The basis for the deficiency determined by the respondent is that the profit realized by the petitioner in the sale of its capital assets must be computed under the provisions of section 112 (b) (5) and section 113 (a) (8) of the Revenue Act of 1928 1 which he asserts are applicable to the facts established in the record. The petitioner contends that such provisions do not apply and the computation of profit must be governed by the exception in section 112 (b) (5), and that if such exception applies it is entitled to a basis for *631computing profit from the sale equal to the…
2Cases cited3 opinions
- Grain King Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Sconset Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Ramsdell v. National Rivet & Novelty Co.U.S. Circuit Court for the District of West Virginia · 1900
3Cited by1 opinion
- Southern Power & Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1933