Sconset Oil Co. v. Commissioner
United States Board of Tax Appeals
1. The basis for computing profit from the sale of assets acquired in exchange for all of petitioner's capital stock is the cost of such property to the prior owner. Section 204(a)(8) of the Revenue Act of 1926. 2. Validity of section 204(a)(8) of the Revenue Act of 1926 upheld.
1Opinion of the Court
*420OPINION.
Lansdon:
The only controversy in this proceeding relates to the basis for computing profit from the sale of assets acquired by the petitioner from an individual in exchange for all of its capital stock. The respondent has determined that the basis is to be determined under section 204 (a) (8) of the Revenue Act of 1926 and that it is cost of the property to the transferor. The petitioner contends that the basis is cost of the assets, which is the fair market value of the stock paid therefor.
Section 204 (a) (8) of the Revenue Act of 1926 1 provides that where property is acquired by a…
2Cited by3 opinions
- Southern Power & Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Schweitzer & Conrad, Inc. v. CommissionerUnited States Board of Tax Appeals · 1940
- Sconset Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1932