Euclid-Tennessee, Inc. v. Commissioner
United States Tax Court
WGB, a corporation which engaged in the manufacturing and distribution of beer, incurred large losses in 1952, 1953, and 1954. In 1954 it abandoned its brewery operations, sold its brewery equipment, but retained its real estate and rented the property.
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WGB, a corporation which engaged in the manufacturing and distribution of beer, incurred large losses in 1952, 1953, and 1954. In 1954 it abandoned its brewery operations, sold its brewery equipment, but retained its real estate and rented the property. On April 2, 1957, WGB amended its charter of incorporation changing its name to SNP, Inc. T was incorporated on April 8, 1957, and its stock was subscribed to by stockholders of E, a profitable heavy equipment and machinery business. On April 10, 1957, T purchased the stock of SNP, thus making T a holding company owning E, a profitable…
1Opinion of the Court
OPINION
The threshold controversy in this case centers around the narrow question of whether the petitioner “continued to carry on a trade or business substantially the same as that conducted before” its stock was purchased by Trippeer. The applicable provision of the law is section 382(a),1 I.R.C. 1954, which imposes special limitations on the use of net operating loss carryovers following certain changes in stock ownership resulting from stock purchase.
There is no dispute about the existence of the requisite percentage change in stock ownership or that a “purchase” of the petitioner’s stock…
2Cases cited6 opinions
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Commissioner of Internal Revenue v. Goodwyn Crockery CompanyCourt of Appeals for the Sixth Circuit · 1963
- Goodwyn Crockery Co. v. CommissionerUnited States Tax Court · 1961
- Beckett v. CommissionerUnited States Tax Court · 1963
- Fawn Fashions, Inc. v. CommissionerUnited States Tax Court · 1963
1 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- United States v. Fenix and Scisson, Inc., a CorporationCourt of Appeals for the Tenth Circuit · 1966
- H. F. Ramsey Co. v. CommissionerUnited States Tax Court · 1965
- Clarksdale Rubber Co. v. CommissionerUnited States Tax Court · 1965
- Euclid-Tennessee, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1965
- National Tea Co. v. CommissionerUnited States Tax Court · 1984
9 more not listed; retrieve them via the Exa API.