Pennsylvania Indemnity Co. v. Commissioner
United States Board of Tax Appeals
A corporation, which in 1930 purchased from a wholly owned subsidiary securities at a price greatly in excess of the market price thereof and immediately thereafter sold them at a price to net less than the market price when acquired, is entitled to deduct from gross income the difference between the fair market value of the securities at the date acquired and the price at which sold, but is not entitled to deduct a loss based upon the price paid to the subsidiary for such…
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A corporation, which in 1930 purchased from a wholly owned subsidiary securities at a price greatly in excess of the market price thereof and immediately thereafter sold them at a price to net less than the market price when acquired, is entitled to deduct from gross income the difference between the fair market value of the securities at the date acquired and the price at which sold, but is not entitled to deduct a loss based upon the price paid to the subsidiary for such securities.
1Opinion of the Court
OPINION.
Smith:
This is a proceeding for the redetermination of a deficiency in income tax for 1930 of $8,636.36. The petition alleges that the respondent erred in the determination of the deficiency (1) in the denial of the petitioner’s right to file a consolidated return with its wholly owned subsidiary, the Pennsylvania Indemnity Corporation, and the latter’s wholly owned subsidiary, the Pennslyvania Indemnity Fire Corporation, and (2) in disallowing the deduction of an alleged loss of $247,631.29 upon the sale of securities in the year 1930 upon the ground that the loss was incurred in a…
2Cases cited1 opinion
- McDonald v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by8 opinions
- Nestle Holdings v. CommissionerUnited States Tax Court · 1995
- Nestle Holdings, Inc. v. Commissioner Of Internal RevenueCourt of Appeals for the Second Circuit · 1998
- American Founders Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Nestlé Holdings, Inc. v. CommissionerCourt of Appeals for the Second Circuit · 1998
- Estate of Skouras v. CommissionerUnited States Tax Court · 1962
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