Haass v. Commissioner
United States Board of Tax Appeals
1. A trust, of which petitioners were beneficiaries, conveyed certain property to a corporation in consideration of the receipt of all of the stock of the corporation and the assumption by the corporation of certain preexisting indebtedness standing against the trust property.
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1. A trust, of which petitioners were beneficiaries, conveyed certain property to a corporation in consideration of the receipt of all of the stock of the corporation and the assumption by the corporation of certain preexisting indebtedness standing against the trust property. Held, following Brons Hotels, Inc.,34 B.T.A. 376, that the assumption of the indebtedness will be regarded as "other property or money" as provided in section 112(c)(1) of the Revenue Act of 1932, and that the transaction accordingly resulted in taxable gain. 2. Where land has been sold on installment contract, with…
1Opinion of the Court
*954OPINION.
Van Fossan: The first issue involves the question of the recognition of gain by reason of the assumption of the liabilities of the trans-feror (Industries) upon the transfer of its property in exchange for all of the capital stock of the transferee corporation (the new company).
No gain is recognizable under section 112 (b) (5) of the Eevenue Act of 1932,1 unless we regard the assumption of the Industries *955liabilities by tbe new company as “other property or money”, as provided by section 112 (c) (l)2 of the same act.
Petitioners rely chiefly on Fashion Center Building Co., 31 B. T. A.…
2Cited by3 opinions
- Services, Inc. v. NeillIdaho Supreme Court · 1953
- Wilcox v. HenricksenDistrict Court, W.D. Washington · 1940
- Haass v. CommissionerUnited States Board of Tax Appeals · 1938