Conrad & Co. v. Commissioner
United States Board of Tax Appeals
1. Where a corporation, after March 3, 1917, used a part of its assets to acquire from its stockholders property which such stockholders acquired without cost, section 331 of the Revenue Acts of 1918 and 1921 prohibits the inclusion in invested capital of any value for such assets. 2. In such circumstances invested capital is properly computed by reducing the amount as computed under section 326 by the amount paid for such assets. 3. Special assessment granted.
1Opinion of the Court
*1339OPINION.
Phillips:
On November 1, 1917, the petitioner corporation took over the business theretofore conducted by S. S. Conrad and B. B. Conrad. This business had been founded about 1860 by D. Conrad, father of S. S. and B. B. Conrad. Just how or when they came into the business is not shown, but it does appear that after 1900 they were the owners. We are here concerned with the determination of the invested capital of the petitioner for the fiscal years ended February 28, 1919, to February 28, 1922, inclusive. The determination of the issue involves consideration of sections 326 and 331 of…
2Cited by1 opinion
- Conrad & Co. v. CommissionerUnited States Board of Tax Appeals · 1928