North Jersey Quarry Co. v. Commissioner
United States Tax Court
1. In computing equity invested capital for excess profits tax purposes, basis of property received by petitioner in 1930 liquidation of wholly owned subsidiary with which petitioner had filed a consolidated return held determinable under Internal Revenue Code, Supplement C. 2. Stock of subsidiary held to have a "cost basis" under Supplement C (Regulations 112, sec. 35.761-3), arrived at in part by valuation of petitioner's stock given in exchange when subsidiary's stock was…
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1. In computing equity invested capital for excess profits tax purposes, basis of property received by petitioner in 1930 liquidation of wholly owned subsidiary with which petitioner had filed a consolidated return held determinable under Internal Revenue Code, Supplement C. 2. Stock of subsidiary held to have a "cost basis" under Supplement C (Regulations 112, sec. 35.761-3), arrived at in part by valuation of petitioner's stock given in exchange when subsidiary's stock was acquired.
1Opinion of the Court
OPINION.
Opper, Judge:
Although asserting that its excess profits credit based on invested capital should'be computed under the general provisions of section 718 of the code, rather than the limited terms of section 761, petitioner nevertheless contends that even under the latter section its tax was correctly arrived at and the deficiency is unwarranted. We are compelled to consider both contentions.
Section 761 is in terms designed to apply to “an intercorporate liquidation.” The effort is reasonably manifest to reach such liquidations only if they were tax-free,1 but word for word the…
2Cases cited2 opinions
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Estate of Myers v. CommissionerUnited States Tax Court · 1942
3Cited by7 opinions
- California Casket Co. v. CommissionerUnited States Tax Court · 1952
- John Simmons Co. v. CommissionerUnited States Tax Court · 1950
- Gage Bros. & Co. v. CommissionerUnited States Tax Court · 1949
- California Casket Co. v. CommissionerUnited States Tax Court · 1952
- Gage Bros. & Co. v. CommissionerUnited States Tax Court · 1949
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