Goldstein Bros., Inc. v. Commissioner
United States Tax Court
A corporation filed a petition in voluntary bankruptcy. The stockholders formed the petitioner corporation which purchased for cash from the trustee in bankruptcy the assets of the bankrupt at the public sale. The creditors did not receive full payment on their claims.
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A corporation filed a petition in voluntary bankruptcy. The stockholders formed the petitioner corporation which purchased for cash from the trustee in bankruptcy the assets of the bankrupt at the public sale. The creditors did not receive full payment on their claims. Held, the transaction whereby petitioner acquired the assets was not a reorganization within the meaning of section 112 (b) (10), Internal Revenue Code of 1939, and the petitioner may not use the basis of the assets in the hands of the bankrupt in computing its excess profits credit under the invested capital method.
1Opinion of the Court
OPINION.
Tietjens, Judge:
The respondent determined deficiencies in excess profits tax for the calendar years 1943 to 1945 in the respective amounts of $17,743.06, $14,896.21, and $21,911.18.
The petitioner attacks as erroneous the respondent’s reduction of the excess profits tax credit claimed upon the petitioner’s excess profits tax returns for those years. The issue is whether the petitioner is entitled to use the basis of its assets in the hands of a former owner in computing its excess profits credit under the invested capital method.
The facts are stipulated and are so found. The petitioner…
2Cases cited7 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Helvering v. Cement Investors, Inc.Supreme Court of the United States · 1942
- Mascot Stove Co. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1941
- Chicago Stadium Corp. v. CommissionerUnited States Tax Court · 1949
- Templeton's Jewelers, Inc. v. United StatesCourt of Appeals for the Sixth Circuit · 1942
2 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Western Massachusetts Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1956
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- Goldstein Bros., Inc. v. CommissionerUnited States Tax Court · 1955
- Western Massachusetts Theatres, Inc. v. CommissionerUnited States Tax Court · 1955
- Western Massachusetts Theatres, Inc. v. CommissionerUnited States Tax Court · 1955