Buckeye Union Casualty Co. v. Commissioner
United States Tax Court
Petitioners, three affiliated casualty insurance companies, transferred their insurance businesses as going concerns to Buckeye Union Insurance Co., a newly formed corporation and wholly owned subsidiary of the Continental Insurance Co. The transfer was effected through two related agreements entitled "Reinsurance and Assumption Agreement" and "Supplemental Agreement" and resulted in an increase of $ 16,376,071.52 in the petitioners' net worth.
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Petitioners, three affiliated casualty insurance companies, transferred their insurance businesses as going concerns to Buckeye Union Insurance Co., a newly formed corporation and wholly owned subsidiary of the Continental Insurance Co. The transfer was effected through two related agreements entitled "Reinsurance and Assumption Agreement" and "Supplemental Agreement" and resulted in an increase of $ 16,376,071.52 in the petitioners' net worth. This increase consisted of $ 5,700,000 paid to petitioners for goodwill under the supplemental agreement and $ 10,676,071.52 retained by the…
1Opinion of the Court
OPINION
This case presents for the first time the issue of the application of section 3376 to the liquidation of an insurance corporation. Section 337 was enacted to eliminate the uncertainties attendant upon the Supreme Court decisions in Commissioner v. Court Holding Co., 324 U.S. 331 (1945), and United States v. Cumberland Pub. Serv. Co., 338 U.S. 451 (1950), in regard to the question of whether a sale of assets prior to a corporate liquidation was accomplished by the corporation or its shareholders. Frank W. Verito, 43 T.C. 429 (1965). The statutory solution embodied in section 337 was to…
2Cases cited9 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Verito v. CommissionerUnited States Tax Court · 1965
- V. L. Phillips & Co., Inc. v. Pennsylvania Threshermen & Farmers' Mut. Cas. Ins. CoCourt of Appeals for the Fourth Circuit · 1952
- Massachusetts Fire & Marine Ins. Co. v. Com'r of Int. Rev.Court of Appeals for the Second Circuit · 1930
4 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Tomlinson v. CommissionerUnited States Tax Court · 1972
- Stern v. CommissionerUnited States Tax Court · 1976
- Buckeye Union Casualty Co. v. CommissionerUnited States Tax Court · 1970
- Hahn v. CommissionerUnited States Tax Court · 1973
- Medical Defense Associates, Ltd. v. CommissionerUnited States Tax Court · 1984
2 more not listed; retrieve them via the Exa API.