Columbia Oil & Gas Co. v. Commissioner
United States Board of Tax Appeals
1. Two brothers in 1931 owned certain oil properties and desired to incorporate. They agreed with one Todd and one Knight that a corporation (petitioner) would be formed with an authorized capital stock of 2,000 shares; that Todd would procure from outsiders cash subscriptions for 500 shares; that the brothers were to transfer the properties to the corporation for 1,500 shares; that the brothers were to deliver 475 of the 1,500 shares to Todd for procuring the cash…
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1. Two brothers in 1931 owned certain oil properties and desired to incorporate. They agreed with one Todd and one Knight that a corporation (petitioner) would be formed with an authorized capital stock of 2,000 shares; that Todd would procure from outsiders cash subscriptions for 500 shares; that the brothers were to transfer the properties to the corporation for 1,500 shares; that the brothers were to deliver 475 of the 1,500 shares to Todd for procuring the cash subscriptions and for agreeing to act as manager of the corporation; and that the brothers were to deliver 75 of the 1,500 shares…
1Opinion of the Court
*43OPINION.
Black :
Issue 1. — Petitioner contends that the respondent erred in his computation of profit in arriving at a “Net remaining cost in leases sold” of $355,940.79 instead of $379,897.78. The parties by stipulation have narrowed this issue to whether the transfer of the oil properties by the Eush brothers to petitioner on May 4, 1931, was a taxable or a nontaxable transaction. This depends upon the effect of section 112 (b) (5) and (j) of the Revenue Acts of 1928 and 1932, which are identical and are as follows:
SEC. 112. RECOGNITION OP GAIN OR LOSS.(a) General Rule.' — Upon the sale or…
2Cases cited8 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Burnet v. LoganSupreme Court of the United States · 1931
- Stephens County v. Mid-Kansas Oil & Gas Co.Texas Supreme Court · 1923
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Texas Company v. W.H. DaughertyTexas Supreme Court · 1915
3 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Diamond v. CommissionerUnited States Tax Court · 1971
- Columbia Oil & Gas Co. v. Commissioner of Internal Rev.Court of Appeals for the Fifth Circuit · 1941
- Hunter v. CommissionerUnited States Tax Court · 1965
- Commissioner v. Roeser & Pendleton, Inc.Court of Appeals for the Fifth Circuit · 1941
- American Liberty Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1940
6 more not listed; retrieve them via the Exa API.