Jordahl & Co. v. Commissioner
United States Board of Tax Appeals
1. (a), (b), and (c). - The petitioner in 1927 sold shares of stock of a subsidiary corporation at an amount less than the cost of such shares but greater than the cost reduced by the prior years' operating losses of the subsidiary which were availed of to reduce the taxable income reported in consolidated returns filed by the affiliated group. Held, that the transaction resulted in neither a deductible loss nor a taxable gain to the petitioner.
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1. (a), (b), and (c). - The petitioner in 1927 sold shares of stock of a subsidiary corporation at an amount less than the cost of such shares but greater than the cost reduced by the prior years' operating losses of the subsidiary which were availed of to reduce the taxable income reported in consolidated returns filed by the affiliated group. Held, that the transaction resulted in neither a deductible loss nor a taxable gain to the petitioner. The prior years' operating losses of the subsidiary are to be applied as a limitation upon the deduction allowable to the parent company, but do not…
1Opinion of the Court
OPINION.
Smith :
This proceeding involves deficiencies in petitioner’s income tax for 1927 and 1928 in the amounts of $13,394.61 and $12,664.18, respectively. There are four major issues involved — (1) gain or loss on the sale of assets; (2) losses on match transactions; (3) amortization of patents; and (4) gain on exchange of assets for petitioner’s own capital stock. The fourth issue is raised by an affirmative plea in the respondent’s amended answer. There are also several collateral issues which will be set forth below.
The petitioner was incorporated in the State of New York on November 19,…
2Cases cited4 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Burnet v. Aluminum Goods Manufacturing Co.Supreme Court of the United States · 1933
- McLaughlin v. Pacific Lumber Co.Supreme Court of the United States · 1934
3Cited by5 opinions
- Ambac Industries, Inc. v. CommissionerUnited States Tax Court · 1973
- Ambac Industries, Inc. v. CommissionerUnited States Tax Court · 1973
- Commissioner of Internal Revenue v. George M. Jones Co.Court of Appeals for the Sixth Circuit · 1945
- George M. Jones Co. v. CommissionerUnited States Tax Court · 1944
- Jordahl & Co. v. CommissionerUnited States Board of Tax Appeals · 1937