International Inv. Corp. v. Commissioner
United States Tax Court
Petitioner's wholly owned subsidiary sold all its assets in the taxable year, dissolved, and distributed the cash resulting from the sale (together with other cash), by distributions extending over into the year after the taxable year, to petitioner in cancellation of petitioner's stock in the subsidiary as to which petitioner's basis was in excess of the total distributions thus received.
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Petitioner's wholly owned subsidiary sold all its assets in the taxable year, dissolved, and distributed the cash resulting from the sale (together with other cash), by distributions extending over into the year after the taxable year, to petitioner in cancellation of petitioner's stock in the subsidiary as to which petitioner's basis was in excess of the total distributions thus received. Held, any loss resulting to petitioner from the transaction is not recognizable, under section 112 (b) (6) of the Internal Revenue Code. Stimson Mill Co., 46 B. T. A. 141, no longer to be followed.
1Opinion of the Court
OPINION.
Kern, Judge".
Respondent determined a deficiency in the income tax of petitioner and its affiliated companies for the year 1942 in the amount of $16,554.98. Practically all of this deficiency resulted from respondent’s determination that no recognizable loss occurred upon the distribution in liquidation made to petitioner during the taxable year by the Portage Water Co., a wholly owned subsidiary of petitioner. Petitioner alleges that respondent erred in determining that no recognizable loss occurred, and in disallowing a loss from the dissolution and liquidation of its subsidiary from…
2Cases cited4 opinions
- Hill v. United States Ex Rel. WamplerSupreme Court of the United States · 1936
- Pirie v. Chicago Title & Trust Co.Supreme Court of the United States · 1901
- Roach v. CommissionerUnited States Tax Court · 1945
- Burnside Veneer Co. v. CommissionerUnited States Tax Court · 1947
3Cited by15 opinions
- Cherry-Burrell Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1966
- Kamis Engineering Co. v. CommissionerUnited States Tax Court · 1973
- Wales v. CommissionerUnited States Tax Court · 1968
- Distributors Finance Corp. v. CommissionerUnited States Tax Court · 1953
- International Investment Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1949
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