Kern's Bakery of Virginia, Inc. v. Commissioner
United States Tax Court
Two unrelated families each owned 50 percent of the fair market value of corporations X, Y, and Z. Pursuant to the tax-free reorganization, corporations Y and Z were merged into corporation X, which had a substantial premerger loss carryover. The shareholders of corporation X received (as a result of owning stock in corporation X) 10 percent of the fair market value of the stock of the survivor corporation.
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Two unrelated families each owned 50 percent of the fair market value of corporations X, Y, and Z. Pursuant to the tax-free reorganization, corporations Y and Z were merged into corporation X, which had a substantial premerger loss carryover. The shareholders of corporation X received (as a result of owning stock in corporation X) 10 percent of the fair market value of the stock of the survivor corporation. Held: Corporations X, Y, and Z were not "owned substantially by the same persons in the same proportion" within the meaning of sec. 382(b)(3), and the loss carryover must be reduced…
1Opinion of the Court
Kern's Bakery of Virginia, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Kern's Bakery of Virginia, Inc. v. Commissioner
Docket Nos. 8428-71, 1297-73
United States Tax Court
68 T.C. 517; 1977 U.S. Tax Ct. LEXIS 84;
July 18, 1977, Filed
Decisions will be entered under Rule 155.
Two unrelated families each owned 50 percent of the fair market value of corporations X, Y, and Z. Pursuant to the tax-free reorganization, corporations Y and Z were merged into corporation X, which had a substantial premerger loss carryover. The shareholders of corporation X received (as a result of owning…
2Cases cited6 opinions
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- Beatrice Levin v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1967
- Verito v. CommissionerUnited States Tax Court · 1965
- Commonwealth Container Corp. v. CommissionerUnited States Tax Court · 1967
- Commonwealth Container Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1968
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