Cromwell Corp. v. Commissioner
United States Tax Court
Four individuals formed Cromwell, which acquired all of the stock of Cornwell, an operating company which owned all of the stock of Kennedy. In order to finance part of the purchase price, Cromwell obtained a temporary $ 400,000 bank loan. Immediately after the purchase, Cornwell obtained a $ 400,000 loan from the bank, and paid a $ 400,000 dividend to Cromwell, which used the proceeds to repay its earlier loan.
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Four individuals formed Cromwell, which acquired all of the stock of Cornwell, an operating company which owned all of the stock of Kennedy. In order to finance part of the purchase price, Cromwell obtained a temporary $ 400,000 bank loan. Immediately after the purchase, Cornwell obtained a $ 400,000 loan from the bank, and paid a $ 400,000 dividend to Cromwell, which used the proceeds to repay its earlier loan. The corporations filed a consolidated return in which the $ 400,000 dividend was eliminated. Held, respondent erred in determining that under section 269, I.R.C. 1954, the…
1Opinion of the Court
Cromwell Corporation, et al., 1 Petitioner, v. Commissioner of Internal Revenue, Respondent
Cromwell Corp. v. Commissioner
Docket Nos. 93889, 93890, 93891
United States Tax Court
43 T.C. 313; 1964 U.S. Tax Ct. LEXIS 8;
December 11, 1964, Filed December 11, 1964, Filed
Decisions will be entered under Rule 50.
Four individuals formed Cromwell, which acquired all of the stock of Cornwell, an operating company which owned all of the stock of Kennedy. In order to finance part of the purchase price, Cromwell obtained a temporary $ 400,000 bank loan. Immediately after the purchase, Cornwell obtained a $…
2Cases cited24 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. TowerSupreme Court of the United States · 1946
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
- Joseph R. Holsey and Eleanor T. Holsey v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
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