Tobacco Products Export Corp. v. Commissioner
United States Tax Court
1. Held: Expenses attributable to abandoned plans of liquidation and partial liquidation of a corporation are deductible in the year of abandonment by the corporation. 2. Held: That portion of expenses of a partial liquidation attributable to the distribution of corporate assets is deductible by the corporation.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first issue to be determined is whether the petitioner corporation can deduct, as expenses, in 1946, all, or any part, of the $34,560.34 expended in connection with the partial liquidation carried out in that year.1 Prior to the execution of the plan to distribute Philip Morris stock and cash to the stockholders in exchange for approximately 90 per cent of its outstanding stock, two separate plans were considered and then abandoned. The demand of a group of stockholders that petitioner distribute its Philip Morris and “China” stock, motivated the retention of…
2Cases cited4 opinions
- Le Mond v. CommissionerUnited States Tax Court · 1949
- Mills Estate, Inc. v. CommissionerUnited States Tax Court · 1951
- Doernbecher Mfg. Co. v. Commissioner of Internal Rev.Court of Appeals for the Ninth Circuit · 1935
- Sibley, Lindsay & Curr Co. v. CommissionerUnited States Tax Court · 1950
3Cited by11 opinions
- Gravois Planing Mill Company, Charles A. And Florence Beckemeier v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- United States v. General Bancshares Corporation, General Bancshares Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1968
- Transamerica Corporation v. United StatesDistrict Court, N.D. California · 1966
- In Re Federated Department Stores, Inc.United States Bankruptcy Court, S.D. Ohio · 1992
- Picker v. United StatesUnited States Court of Claims · 1967
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