Farr v. Commissioner
United States Tax Court
1. Corporation A, which was organized in 1945, had a franchise from the Studebaker Corporation under which it carried on a business of buying and selling automobiles. It carried on its business in rented space. All of the outstanding stock of corporation A, 250 shares, was owned by petitioner. Studebaker required that the corporation should obtain better facilities and space for the conduct of its business.
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1. Corporation A, which was organized in 1945, had a franchise from the Studebaker Corporation under which it carried on a business of buying and selling automobiles. It carried on its business in rented space. All of the outstanding stock of corporation A, 250 shares, was owned by petitioner. Studebaker required that the corporation should obtain better facilities and space for the conduct of its business. Two unimproved lots located on different streets were purchased with the intention of constructing a building, on the better of the two locations, in which the corporation would carry on…
1Opinion of the Court
OPINION.
HaRRON, Judge:
The main issue is whether petitioner’s receipt of 100 shares of Realty corporation stock from Motor Sales corporation in exchange for 50 shares of Motor Sales stock, constituted a taxable dividend to the petitioner, in the amount of $44,972.46, under the provisions of section 115 (a) and 115 (g)1 of the 1939 Code, as the Commissioner has determined, or constituted a tax-free exchange of stock, under section 112 (b) (3),2 pursuant to a reorganization as defined in section 112 (g) (1) (D).3
The respondent makes several contentions, the ultimate contention being that the…
2Cases cited20 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. GregoryCourt of Appeals for the Second Circuit · 1934
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Lewis v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Lewis v. CommissionerUnited States Tax Court · 1948
15 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Penrod v. CommissionerUnited States Tax Court · 1987
- Easson v. CommissionerUnited States Tax Court · 1960
- United States v. Gerald and Gladys CareyCourt of Appeals for the Eighth Circuit · 1961
- McDonald's of Zion, 432, Ill., Inc. v. CommissionerUnited States Tax Court · 1981
- Estate of Parshelsky v. CommissionerCourt of Appeals for the Second Circuit · 1962
14 more not listed; retrieve them via the Exa API.