Spangler v. Commissioner
United States Tax Court
Held, the exchange by stockholders of half their stock in a corporation for the pro rata distribution of stock in a newly created corporation which transferred all its stock to the distributing corporation in exchange for property of the distributing corporation was an exchange upon which no gain or loss will be recognized under the provisions of section 112 (b) (3), I. R. C.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The only issue in this proceeding is whether the petitioners’ exchange of 6 shares of Western States stock for 12 shares of Permian stock is taxable, and, if so, whether as capital gain or as ordinary income. The petitioners contend that the transaction was in pursuance of a plan of reorganization and that no gain or loss is to be recognized. Alternatively, they argue that the distribution was in partial liquidation. Respondent urges that the distribution of Permian stock to the shareholders of Western States was a taxable property dividend under section 115 (a) of…
2Cases cited10 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. GregoryCourt of Appeals for the Second Circuit · 1934
- Bazley v. CommissionerSupreme Court of the United States · 1947
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Rockefeller v. United StatesSupreme Court of the United States · 1921
5 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Bullock v. CommissionerUnited States Tax Court · 1956
- Northup v. United StatesCourt of Appeals for the Second Circuit · 1957
- June M. Carlberg, by Vida M. Frick, Guardian v. United StatesCourt of Appeals for the Eighth Circuit · 1960
- Farr v. CommissionerUnited States Tax Court · 1955
- Estate of Parshelsky v. CommissionerCourt of Appeals for the Second Circuit · 1962
8 more not listed; retrieve them via the Exa API.