Hendler v. United States

Apart from the literal meaning of the section, the assumption of liabilities in this case was not within the substantial import of the statute. In financial substance Hendler merely exchanged its equity in its property for shares of stock in the Borden Company which represented only the equity therein, and which pro tanto were diminished in value by the Hendler liabilities assumed by Borden. Neither in form nor substance did Hendler receive any “other property or money” by Borden’s assumption of Hendler’s liabilities.

Counsel for the Government also contends the item of $534,297.40, even if…