Boehringer v. Commissioner
United States Board of Tax Appeals
A corporation transferred to a new corporation all of its assets, except an amount of cash not in excess of earnings accumulated since February 28, 1913, subject to all liabilities, in exchange for all of the new company's stock, which it distributed to its stockholders, without surrender of their old shares. It was dissolved a few days later, and a month thereafter it distributed to its stockholders the cash retained and they surrendered their old stock certificates.
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A corporation transferred to a new corporation all of its assets, except an amount of cash not in excess of earnings accumulated since February 28, 1913, subject to all liabilities, in exchange for all of the new company's stock, which it distributed to its stockholders, without surrender of their old shares. It was dissolved a few days later, and a month thereafter it distributed to its stockholders the cash retained and they surrendered their old stock certificates. Held: (1) The transaction is not within sec. 112(c)(2), Revenue Act of 1928, because, while there was a reorganization, sec.…
1Opinion of the Court
*9OPINION.
MuRdock :
The Commissioner determined a deficiency of $2,248.01 in the petitioner’s income tax for 1928. In determining the deficiency the Commissioner included $20,000 in income as dividends received in the reorganization of the American Zeolite Corporation and explained this adjustment as follows:
In accordance with section 112 (c) (1) of the Revenue Act of 1928 and Article 575, Regulations 74, the income from reorganization is computed as follows:
Cash received_$20, 000.00
Stock received having value of_ 50,116. 62
Total_$70,116.62
Cost of original investment_ 20, 000.00
Taxable…
2Cases cited3 opinions
- Brown v. CommissionerUnited States Board of Tax Appeals · 1932
- Hill v. CommissionerUnited States Board of Tax Appeals · 1932
- Bamberger v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by8 opinions
- Spangler v. CommissionerUnited States Board of Tax Appeals · 1933
- Ward M. Canaday, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
- Harrison v. CommissionerUnited States Board of Tax Appeals · 1934
- Boehringer v. CommissionerUnited States Board of Tax Appeals · 1933
- Harrison v. CommissionerUnited States Board of Tax Appeals · 1934
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