Bankers Farm Mortg. Co. v. Commissioner
United States Tax Court
Petitioner corporation was organized by a group of bondholders of an insolvent joint stock land bank for the purpose of acquiring its assets from the receiver and continuing the liquidation of them. Some of the bonds of the insolvent were acquired by petitioner for its stock and some for cash, until finally it owned 98.7 percent of all outstanding bonds.
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Petitioner corporation was organized by a group of bondholders of an insolvent joint stock land bank for the purpose of acquiring its assets from the receiver and continuing the liquidation of them. Some of the bonds of the insolvent were acquired by petitioner for its stock and some for cash, until finally it owned 98.7 percent of all outstanding bonds. Petitioner thereupon negotiated a sale in 1933 of the assets by the receiver at public sale at an upset price which was bid by petitioner, credit being given upon the amount bid for the proportion of the total of outstanding bonds held by…
1Opinion of the Court
OPINION.
Leech, Judge:
The facts here disclose a situation similiar in all essential respects to that in the recent case of Palm Springs Holding Corporation v. Commissioner, 315. U. S. 185. There the Supreme Court held that a reorganization resulted under section 112 (i) of the Revenue Act of 1932, which is here controlling, and that basis of the assets to the new company was the cost basis of the transferor under section 113 (a) (7) of that act.
Respondent, however, contends that the present case may be distinguished and is not controlled by the cited decision. He calls attention to the fact…
2Cases cited6 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- LeTulle v. ScofieldSupreme Court of the United States · 1940
- Federal Land Bank v. PriddySupreme Court of the United States · 1935
- Magruder v. Washington, Baltimore & Annapolis Realty Corp.Supreme Court of the United States · 1942
- Dallas Joint Stock Land Bank v. State Ex Rel. CobbCourt of Appeals of Texas · 1939
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Bankers Farm Mortg. Co. v. CommissionerUnited States Tax Court · 1943