National Sec. Corp. v. Commissioner
United States Board of Tax Appeals
Corporation A transferred to corporation B, a wholly owned subsidiary, shares of stock of another corporation having a value of $8,562.50 in exchange for shares of B having a value of approximately $73,000. In the same year corporation B sold the stock to a third party for $7,175. The Commissioner disallowed to corporation B any portion of the loss resulting from the sale of the shares in question, stating in his deficiency notice that this action was taken pursuant to…
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Corporation A transferred to corporation B, a wholly owned subsidiary, shares of stock of another corporation having a value of $8,562.50 in exchange for shares of B having a value of approximately $73,000. In the same year corporation B sold the stock to a third party for $7,175. The Commissioner disallowed to corporation B any portion of the loss resulting from the sale of the shares in question, stating in his deficiency notice that this action was taken pursuant to section 45 of the Revenue Act of 1936. The Commissioner now concedes that corporation B is entitled to a loss deduction of…
1Opinion of the Court
*564OPINION.
Smith:
Petitioner’s contentions are that the respondent has not applied section 45, as he professes to have done, but has disallowed the claimed deduction in whole and without statutory authority; that in any event section 45 does not give the respondent authority to make an allocation of the loss in question; and that the deduction claimed is clearly allowable under section 23 (f) and (j) and section 113 (a) (8) of the Revenue Act of 1936.
The sections of the statute referred to above, and others which petitioner deems pertinent to the question in issue, read in part as follows:
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2Cited by38 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Ach v. CommissionerUnited States Tax Court · 1964
- Riss v. CommissionerUnited States Tax Court · 1971
- National Securities Corp. v. Com'r of Internal RevenueCourt of Appeals for the Third Circuit · 1943
- Ballentine Motor Co. v. CommissionerUnited States Tax Court · 1962
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