Manhattan Bldg. Co. v. Commissioner
United States Tax Court
In 1922 an individual, pursuant to an agreement with underwriters, borrowed money, acquired assets from a receivers' sale, and transferred them to a new corporation, Auto-Lite, for stock and bonds. The bonds and some stock were transferred to the underwriters. The individual retained a majority, but less than 80 per cent, of the total stock. Respondent and the individual treated this as a nontaxable transaction.
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In 1922 an individual, pursuant to an agreement with underwriters, borrowed money, acquired assets from a receivers' sale, and transferred them to a new corporation, Auto-Lite, for stock and bonds. The bonds and some stock were transferred to the underwriters. The individual retained a majority, but less than 80 per cent, of the total stock. Respondent and the individual treated this as a nontaxable transaction. Petitioner's predecessor received some of this stock in a nontaxable exchange, and in 1925 exchanged stock in a taxable exchange for improved real property, reporting neither gain nor…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The respondent determined deficiencies for 1945 in income tax in the amount of $30,473.03 and in personal holding company surtax in the amount of $3,207.21. The deficiencies resulted from the determination that the petitioner realized a long-term capital gain of $67,396.03 on the sale of certain real estate (referred to herein as the Summit Street property) instead of a loss of $32,603.97 from the sale of property other than a capital asset and from the dis-allowance of deductions for certain real estate taxes in the amount of $1,642.25.
The petitioner alleges error in…
2Cases cited13 opinions
- Helvering v. SalvageSupreme Court of the United States · 1936
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Joyce v. GentschCourt of Appeals for the Sixth Circuit · 1944
- Commissioner of Internal Revenue v. DwyerCourt of Appeals for the Second Circuit · 1953
- The Crosley Corporation v. United StatesCourt of Appeals for the Sixth Circuit · 1956
8 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
- Badger Materials, Inc. v. CommissionerUnited States Tax Court · 1963
- Bartel v. CommissionerUnited States Tax Court · 1970
- Culligan Water Conditioning of Tri-Cities, Inc., Successor in Interest to Culligan Water Conditioning of Kennewick, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1978
- Thomas P. Stanton and Wanda S. Stanton v. United StatesCourt of Appeals for the Third Circuit · 1975
10 more not listed; retrieve them via the Exa API.