Pacific Public Service Co. v. Commissioner
United States Tax Court
Cancellation of common stock and exchange of bonds, preferred stock, and demand note for securities of new corporation in 77B proceeding, held to result in tax-free exchange and consequent carry-over of old basis of the bonds and preferred stock but not of the common stock and demand note.
1Opinion of the Court
OPINION.
Opper, Judge:
In order to compute the deductible loss sustained by petitioner upon a sale in the instant tax year it becomes necessary to fix a basis for the securities which it sold. This in turn involves the question whether the transaction by which petitioner received the stock through a 77B reorganization in exchange for certain interests in a predecessor company was such that petitioner’s loss was then recognizable and a new basis acquired, or whether, as petitioner contends, it retained its original basis. This is the sole issue.
The nonrecognition is claimed under three theories…
2Cases cited8 opinions
- Northern Pacific Railway Co. v. BoydSupreme Court of the United States · 1913
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Helvering v. Cement Investors, Inc.Supreme Court of the United States · 1942
3 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Raich v. CommissionerUnited States Tax Court · 1966
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- Harrison v. CommissionerUnited States Tax Court · 1955
- Seiberling Rubber Co. v. CommissionerUnited States Tax Court · 1947
- Pacific Public Service Co. v. Commissioner of Int. Rev.Court of Appeals for the Ninth Circuit · 1946
8 more not listed; retrieve them via the Exa API.