Morris Trust v. Commissioner
United States Tax Court
American, a State bank, and Security, a national bank, consolidated under the national bank's charter. American had carried on an insurance brokerage business for more than 5 years. Since the national bank resulting from the consolidation would not be permitted to carry on such a business, American transferred the brokerage business to Insurance, a new corporation, for all its stock and distributed the stock of Insurance to the shareholders of American.
Read the full summary
American, a State bank, and Security, a national bank, consolidated under the national bank's charter. American had carried on an insurance brokerage business for more than 5 years. Since the national bank resulting from the consolidation would not be permitted to carry on such a business, American transferred the brokerage business to Insurance, a new corporation, for all its stock and distributed the stock of Insurance to the shareholders of American. Held, the transfer was a nontaxable spin-off, and the value of the distributed stock is not taxable to the shareholders as a dividend. Secs.…
1Opinion of the Court
Mary Archer W. Morris Trust, North Carolina National Bank, Trustee, Petitioner, v. Commissioner of Internal Revenue, Respondent
Morris Trust v. Commissioner
Docket No. 623-63
United States Tax Court
42 T.C. 779; 1964 U.S. Tax Ct. LEXIS 70;
July 24, 1964, Filed
Decision will be entered for the petitioner.
American, a State bank, and Security, a national bank, consolidated under the national bank's charter. American had carried on an insurance brokerage business for more than 5 years. Since the national bank resulting from the consolidation would not be permitted to carry on such a business, American…
2Cases cited15 opinions
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Goodell v. KochSupreme Court of the United States · 1930
- Helvering v. Elkhorn Coal Co.Court of Appeals for the Fourth Circuit · 1938
10 more not listed; retrieve them via the Exa API.