Georgia Sav. Bank & Trust Co. v. Commissioner
United States Board of Tax Appeals
Where the stockholders in 1928 exchanged their stock in A corporation, a party to a reorganization, for stock only in B corporation, also a party to the reorganization, and A corporation sold its real estate and part of its personal property to B corporation for a cash consideration of $200,000 and declared dividends of $200,000 out of surplus, held, that the two transactions were separate both in substance and in form, although part of a general plan; that the stockholders…
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Where the stockholders in 1928 exchanged their stock in A corporation, a party to a reorganization, for stock only in B corporation, also a party to the reorganization, and A corporation sold its real estate and part of its personal property to B corporation for a cash consideration of $200,000 and declared dividends of $200,000 out of surplus, held, that the two transactions were separate both in substance and in form, although part of a general plan; that the stockholders of A corporation exchanged stock for stock only, and not for stock and cash, and that under the provisions of section…
1Opinion of the Court
*1161OPINION.
Trammell:
The issue here is whether the petitioners exchanged their stock in the Excelsior Laundry Co. for 5,000 shares of preferred and 12,500 shares of common stock in Atlanta Laundries, Inc., plus $200,000 cash, or whether they exchanged their stock in the old corporation for stock only in the new corporation. The transaction occurred in 1928, under the circumstances set out in our findings of fact.
The respondent has determined, and the petitioners concede, that the transaction constituted a reorganization within the meaning of that term as used in section 112 (i) (1) of the Revenue…
2Cases cited5 opinions
- Weiss v. StearnSupreme Court of the United States · 1924
- United States v. IshamSupreme Court of the United States · 1873
- Weeks v. SibleyDistrict Court, N.D. Texas · 1920
- Stock Yards Bank of Cincinnati v. CommissionerUnited States Board of Tax Appeals · 1932
- Warden v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by1 opinion
- Georgia Sav. Bank & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1933