Houston Bros. Co. v. Commissioner
United States Board of Tax Appeals
1. In determining whether the receipt by a corporation of its own stock in exchange for some of its assets may be regarded as the receipt of property within the provisions of the Revenue Act of 1924 for determining gain or loss, and whether the corporation in fact realized any gain, the statute must be so construed that the same standards for its application will be used for losses as well as for gains. 2. Where a corporation in a single transaction, deliberately so…
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1. In determining whether the receipt by a corporation of its own stock in exchange for some of its assets may be regarded as the receipt of property within the provisions of the Revenue Act of 1924 for determining gain or loss, and whether the corporation in fact realized any gain, the statute must be so construed that the same standards for its application will be used for losses as well as for gains. 2. Where a corporation in a single transaction, deliberately so formulated and actually so carried out, acquires shares of its own stock in exchange for some of its assets, the transaction is…
1Opinion of the Court
OPINION.
SteRnhagen:
The respondent determined a deficiency in income tax of $3,585.17 for 1924, resulting in part from the inclusion in income of a profit of $27,000 held to have been derived by petitioner when it acquired shares of its own stock in exchange for shares of another corporation. The proceeding was submitted upon the following stipulation of facts, with a brief for the petitioner only.
1. Petitioner, a New Jersey corporation with its principal office at Pittsburgh, Pennsylvania, was organized on May 6, 1901, and is engaged in the wholesale and retail business of dealing in…
2Cases cited7 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. PhellisSupreme Court of the United States · 1921
- United States v. IshamSupreme Court of the United States · 1873
- United States v. FlannerySupreme Court of the United States · 1925
- Miles v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1922
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3Cited by10 opinions
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- Edwin L. Wiegand Co. v. United StatesUnited States Court of Claims · 1945
- Niagara Share Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Boca Ceiga Dev. Co. v. CommissionerUnited States Board of Tax Appeals · 1932
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