John Simmons Co. v. Commissioner
United States Tax Court
Formation of petitioner, issuance of its shares in exchange for short term options to purchase all of the stock of another corporation, purchase of such stock by exercise of the options, and liquidation and transfer to petitioner of subsidiary's assets, held on facts to result in one integrated transaction constituting a purchase, so that petitioner held the stock with a "cost basis," thus dispensing with any "plus adjustment" to its equity invested capital for excess…
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Formation of petitioner, issuance of its shares in exchange for short term options to purchase all of the stock of another corporation, purchase of such stock by exercise of the options, and liquidation and transfer to petitioner of subsidiary's assets, held on facts to result in one integrated transaction constituting a purchase, so that petitioner held the stock with a "cost basis," thus dispensing with any "plus adjustment" to its equity invested capital for excess profits tax purposes under section 761, Internal Revenue Code.
1Opinion of the Court
OPINION.
OppeR, Judge:
Whether the stock in question is considered to have a “cost basis” or a “basis other than cost” in computing the basis of assets for equity invested capital purposes of the excess profits tax under section 761, Internal Revenue Code,1 is accepted by the parties as depending upon the nature of the transaction in which the stock was acquired. While the two terms are not defined, it may be said as a broad generalization that the purpose of section 761 is to provide for certain adjustments where the assets received on a liquidation are attributable to stock which, rather than…
2Cases cited2 opinions
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- North Jersey Quarry Co. v. CommissionerUnited States Tax Court · 1949
3Cited by14 opinions
- James and Martha Kuper and Charles and Kathleen Kuper, Cross-Appellees v. Commissioner of Internal Revenue, Cross-AppellantCourt of Appeals for the Fifth Circuit · 1976
- Portland Mfg. Co. v. CommissionerUnited States Tax Court · 1971
- California Casket Co. v. CommissionerUnited States Tax Court · 1952
- Kuper v. CommissionerUnited States Tax Court · 1974
- John Simmons Co. v. CommissionerUnited States Tax Court · 1955
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