Berghash v. Commissioner
United States Tax Court
Distributions in redemption of all the stock of a corporation were made pursuant to a plan under which certain operating assets were first sold to a new corporation. The outstanding stock of the new corporation was owned one-half by the principal shareholder of the old corporation and one-half by a new investor. The old corporation was liquidated and dissolved.
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Distributions in redemption of all the stock of a corporation were made pursuant to a plan under which certain operating assets were first sold to a new corporation. The outstanding stock of the new corporation was owned one-half by the principal shareholder of the old corporation and one-half by a new investor. The old corporation was liquidated and dissolved. Held: 1. The transaction did not qualify as a statutory reorganization under section 368(a)(1) (D) or (F), I.R.C. 1954. 2. The distributions to the shareholders of the old corporation constituted distributions in payment for the…
1Opinion of the Court
Withey, Judge:
The respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows: ■
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The issues presented for our decision relate to the correctness of the respondent’s action in determining (1)' that petitioner Hyman H. Berghash received ordinary income in the form of a dividend in the amount of $122,050.11 and long-term capital gain in the amount of $21,153.24 as distributions from the Delavan-Bailey Drug Co., Inc., during 1957; and (2) that, in the alternative, petitioner Delavan-Bailey Drug Co., Inc., received recognized long-term…
2Cases cited34 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Knetsch v. United StatesSupreme Court of the United States · 1960
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
29 more not listed; retrieve them via the Exa API.
3Cited by38 opinions
- Commissioner of Internal Revenue v. Hyman H. Berghash and Rose Berghash, Commissioner of Internal Revenue v. Delavan-Bailey Drug Co., Inc.Court of Appeals for the Second Circuit · 1966
- Estate of Lammerts v. CommissionerUnited States Tax Court · 1970
- Associated MacHine (Formerly Associated MacHine Shop), a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1968
- Stauffer v. CommissionerUnited States Tax Court · 1967
- Yoc Heating Corp. v. CommissionerUnited States Tax Court · 1973
33 more not listed; retrieve them via the Exa API.