Hawaiian Freight Forwarders, Ltd. v. Commissioner
United States Tax Court
A, B, and C were partners in a freight forwarding business with interests approximating 49%, 35% and 15%, respectively. A and B reached an agreement with an outside party for the transfer of the business and its assets, exclusive of C's interest, to a newly organized corporation.
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A, B, and C were partners in a freight forwarding business with interests approximating 49%, 35% and 15%, respectively. A and B reached an agreement with an outside party for the transfer of the business and its assets, exclusive of C's interest, to a newly organized corporation. An agreement was then reached with C for the payment to him of an amount which the parties had agreed represented his interest in the assets of the business, including good will, and in the accumulated profits since the beginning of the year. Petitioner corporation was then formed and in exchange for its entire issue…
1Opinion of the Court
OPINION.
TURNER, Judge:
The respondent determined deficiencies in excess profits tax against the petitioner for the fiscal years ended November 30, 1943, and November 30, 1944, in the amounts of $21,424.70 and $7,403.23. The question is whether or not the respondent erred in determining petitioner’s excess profits credit on the basis of invested capital under section 714 of the Internal Revenue Code rather than upon the basis of income under section 713 of the Code. The answer to that question in turn depends upon the determination whether petitioner was or was not an acquiring corporation…
2Cases cited2 opinions
- E. T. Renfro Drug Co. v. CommissionerUnited States Tax Court · 1948
- Ransohoffs, Inc. v. CommissionerUnited States Tax Court · 1947
3Cited by3 opinions
- J. M. Turner & Co. v. CommissionerUnited States Tax Court · 1956
- Hawaiian Freight Forwarders, Ltd. v. CommissionerUnited States Tax Court · 1950
- J. M. Turner & Co. v. CommissionerUnited States Tax Court · 1956