Pacific Coast Biscuit Co. v. Commissioner
United States Board of Tax Appeals
1. Fee for amendment of charter is in the nature of an organization expense and may be deducted as a loss upon dissolution. Malta Temple Association,16 B.T.A. 409. 2. Fees paid in connection with the retirement of capital stock and the issue and sale of new stock do not result in the acquisition of any asset for which a loss can be taken upon dissolution.
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1. Fee for amendment of charter is in the nature of an organization expense and may be deducted as a loss upon dissolution. Malta Temple Association,16 B.T.A. 409. 2. Fees paid in connection with the retirement of capital stock and the issue and sale of new stock do not result in the acquisition of any asset for which a loss can be taken upon dissolution. James I. Van Keuren,28 B.T.A. 480. 3. Amounts expended in connection with the dissolution and liquidation of a corporation are deductible in the year that dissolution occurred, as ordinary and necessary business expenses. 4. An overpayment…
1Opinion of the Court
*41OPINION.
ARunbell :
The amounts expended in 1926 in connection with the retirement of capital stock and the issuance of new stock, and the expenditures in 1930 in connection with petitioner’s dissolution and liquidation, are claimed by petitioner to be deductible as losses in the year 1930. This claim is based on the holding in Malta, Temple Association, 16 B. T. A. 409.
In the Malta case we found as a fact that in connection with the taxpayer’s incorporation it incurred certain expenses which, under our holdings in cases cited, constituted capital expenditures. The amount of those expenses we…
2Cases cited3 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
3Cited by47 opinions
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
- Mills Estate, Inc. v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. Mills Estate, IncCourt of Appeals for the Second Circuit · 1953
- Gravois Planing Mill Company, Charles A. And Florence Beckemeier v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964
- Vulcan Materials Company v. United StatesCourt of Appeals for the Fifth Circuit · 1971
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