Kimbell-Diamond Milling Co. v. Comm'r
United States Tax Court
In August, 1942, petitioner's Wolfe City, Texas, milling plant was destroyed by fire and in November, 1942, petitioner collected insurance as a reimbursement for its loss. On December 26, 1942, using the insurance proceeds and other money, petitioner acquired 100 per cent of the stock of Whaley Mill & Elevator Co. of Gainesville, Texas. Petitioner's sole intention in purchasing Whaley's stock was to acquire Whaley's assets and liquidate Whaley as soon as practicable.
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In August, 1942, petitioner's Wolfe City, Texas, milling plant was destroyed by fire and in November, 1942, petitioner collected insurance as a reimbursement for its loss. On December 26, 1942, using the insurance proceeds and other money, petitioner acquired 100 per cent of the stock of Whaley Mill & Elevator Co. of Gainesville, Texas. Petitioner's sole intention in purchasing Whaley's stock was to acquire Whaley's assets and liquidate Whaley as soon as practicable. On December 31, 1942, Whaley was dissolved and its assets distributed to petitioner. Held, our decision in Kimbell-Diamond…
1Opinion of the Court
OPINION.
Black, Judge:
This proceeding involves deficiencies in income, declared value excess profits, and excess profits taxes for the fiscal years ended May 31,1945 and 1946, in the following amounts:
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The deficiencies are primarily due to respondent’s reduction of petitioner’s basis in assets acquired by it in December, 1942’, through the liquidation of another corporation known as Whaley Mill & Elevator Co. (sometimes hereinafter referred to as Whaley). By reason of this reduction respondent has adjusted petitioner’s allowable depreciation and its excess profits tax credit based…
2Cases cited8 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Koppers Coal Co. v. CommissionerUnited States Tax Court · 1946
- Prairie Oil & Gas Co. v. MotterCourt of Appeals for the Tenth Circuit · 1933
- Ahles Realty Corp. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1934
3 more not listed; retrieve them via the Exa API.
3Cited by180 opinions
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- J. C. Penney Company, Transferee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- Coors v. CommissionerUnited States Tax Court · 1973
- Palmer v. CommissionerUnited States Tax Court · 1974
- J. C. Penney Co. v. CommissionerUnited States Tax Court · 1962
175 more not listed; retrieve them via the Exa API.