Cardinal Corp. v. Commissioner
United States Tax Court
1. Held, an amount received by petitioner in 1958 was not includable in gross income. Such amount was received in exchange for stock of petitioner under sec. 1032, I.R.C. 1954. 2. Held, further, legal fees paid by petitioner in 1958 were for services rendered to petitioner.
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1. Held, an amount received by petitioner in 1958 was not includable in gross income. Such amount was received in exchange for stock of petitioner under sec. 1032, I.R.C. 1954. 2. Held, further, legal fees paid by petitioner in 1958 were for services rendered to petitioner. Petitioner is entitled to deduct the legal fees as an ordinary and necessary expense under sec. 162(a), I.R.C. 1954. 3. Held, further, actuarial fees paid by petitioner in 1958 were for services rendered to petitioner. Petitioner is entitled to deduct the actuarial fees as an ordinary and necessary expense under sec.…
1Opinion of the Court
OPINION
Issue 1. Whether $1¡02,521¡..71 Received in the Year 1958 is Gross Income to Petitioner or is it Money Received in Exchcmge for Stock of Petitioner TJnder Section 1082
The first issue to be considered is whether petitioner must include in gross income for 1958 the $402,524.71 received from preferred shareholders and their assignees.
Section 1032 of the Internal Bevenue Code of 1954 provides that no gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock (including treasury stock) of such corporation. Section 1032 had no…
2Cases cited16 opinions
- Pepper v. LittonSupreme Court of the United States · 1939
- Huddleston v. DwyerSupreme Court of the United States · 1944
- General American Investors Co. v. CommissionerSupreme Court of the United States · 1955
- Zahn v. Transamerica CorporationCourt of Appeals for the Third Circuit · 1947
- Pike v. CommissionerUnited States Tax Court · 1965
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3Cited by1 opinion
- Cardinal Corp. v. CommissionerUnited States Tax Court · 1969