Kramon Development Co. v. Commissioner
United States Tax Court
Petitioner's redemption at less than par of bonds issued by it for property of a value less than the face amount of the bonds, petitioner at all times being insolvent, held, not to result in taxable gain. Dallas Transfer & Terminal Warehouse Co. v. Commissioner (C. C. A., 5th Cir.), 70 Fed. (2d) 95, followed.
1Opinion of the Court
OPINION.
OppeR, Judge:
This proceeding falls into the vexed category of controverted gain through the reduction of liabilities. See Helvering v. American Dental Co., 318 U. S. 322. The distinctions from the situation presented in that case, however, are obvious. Fifth Avenue-14th Street Corporation, 2 T. C. 516. But were it not for three other circumstances, the present case would fall squarely within United States v. Kirby Lumber Co., 284 U. S. 1. This petitioner issued its bonds for property, while in the Kirby case they were issued for cash. Subsequent developments indicate at least a…
2Cases cited6 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Helvering v. American Chicle Co.Supreme Court of the United States · 1934
- Gehring Publishing Co. v. CommissionerUnited States Tax Court · 1942
- Fifth Avenue-14th Street Corp. v. CommissionerUnited States Tax Court · 1943
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3Cited by3 opinions
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Kramon Development Co. v. CommissionerUnited States Tax Court · 1944