Hays Corp. v. Commissioner
United States Tax Court
All the stock of M corporation was owned by individuals A, B, C, and D. In 1955, petitioner issued some of its voting stock and, pursuant to written contract with A, B, C, and D, exchanged it for all of their stock of M. Held: The transaction constituted a reorganization ( sec. 368(a)(1)(B), I.R.C. 1954) to which M was a party ( sec. 368(b)(2), I.R.C. 1954). No gain was recognized by A, B, C, and D on the transaction ( sec. 354(a)(1), I.R.C. 1954), and petitioner's basis in…
Read the full summary
All the stock of M corporation was owned by individuals A, B, C, and D. In 1955, petitioner issued some of its voting stock and, pursuant to written contract with A, B, C, and D, exchanged it for all of their stock of M. Held: The transaction constituted a reorganization ( sec. 368(a)(1)(B), I.R.C. 1954) to which M was a party ( sec. 368(b)(2), I.R.C. 1954). No gain was recognized by A, B, C, and D on the transaction ( sec. 354(a)(1), I.R.C. 1954), and petitioner's basis in the M stock was the aggregate of the bases of A, B, C, and D ( sec. 362(b), I.R.C. 1954).
1Opinion of the Court
OPINION
Forrester, Judge:
Respondent has determined a deficiency in income tax of petitioner for the taxable year 1957 in the amount of $12,185.68. Petitioner has agreed to certain adjustments, and the issue remaining is whether petitioner’s basis in certain stock was its cost to petitioner or its basis in the hands of its former holders. Wholly dependent on the resolution of this issue is the determination of the amount of a net operating loss carryover to the year before us.
Most of the facts have been stipulated and are so found.
Petitioner is an Indiana corporation with principal offices…
2Cases cited4 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Cammarano v. United StatesSupreme Court of the United States · 1959
- Commissioner v. Gooch Milling & Elevator Co.Supreme Court of the United States · 1944
- Commissioner v. HuntzingerCourt of Appeals for the Tenth Circuit · 1943
3Cited by47 opinions
- Pesch v. CommissionerUnited States Tax Court · 1982
- The Hays Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1964
- Estate of Rosenberg v. CommissionerUnited States Tax Court · 1980
- Paxman v. CommissionerUnited States Tax Court · 1968
- Stovall v. CommissionerUnited States Tax Court · 1993
42 more not listed; retrieve them via the Exa API.