Wilson v. Commissioner
United States Tax Court
Held, retail furniture corporation's transfer of installment financing activities to new corporation in exchange for stock of the latter which was distributed to its own stockholders was a nonrecognizable spin-off.
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Held, retail furniture corporation's transfer of installment financing activities to new corporation in exchange for stock of the latter which was distributed to its own stockholders was a nonrecognizable spin-off. Sec. 355, I.R.C. 1954. On the facts of this case the transaction was not a device for the distribution of earnings and profits within the meaning of section 355(a)(1)(B), and the installment financing activities complied with the active business requirements of section 355(a)(1)(C) and (b)(2)(B).
1Opinion of the Court
OPINION
Naum, Judge:
Petitioners contend that their receipt of the Wil-Plan stock in 1958 was pursuant to a so-called spin-off that was entitled to nonrecognition under section 355 of the 1954 Code.1
When Wilson’s, Inc., transferred its financing operations, consisting primarily of its installment sales contracts, to the newly organized Wil-Plan Co., and caused the stock of the latter to be distributed to petitioners, stockholders of Wilson’s, Inc., the transaction fell precisely within the terms of section 355(a) (1) (A), which sets forth the first condition for nonrecognition. Wilson’s, Inc.,…
2Cases cited6 opinions
- Coady v. CommissionerUnited States Tax Court · 1960
- United States v. W. W. Marett and Ruth MarettCourt of Appeals for the Fifth Circuit · 1963
- Elliott v. CommissionerUnited States Tax Court · 1959
- Henry H. Bonsall, Jr., and Martha G. Bonsall, C. Jordan Vail and Nancy B. Vail v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1963
- Appleby v. CommissionerUnited States Tax Court · 1961
1 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Van Raden v. CommissionerUnited States Tax Court · 1979
- Commissioner of Internal Revenue v. Marne S. Wilson, Marjorie M. Wilson, Lyle C. Wilson and Peggy WilsonCourt of Appeals for the Ninth Circuit · 1965
- Joseph v. Rafferty v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1971
- Boettger v. CommissionerUnited States Tax Court · 1968
- Challenger, Inc. v. CommissionerUnited States Tax Court · 1964
9 more not listed; retrieve them via the Exa API.