Bloomington Coca-Cola Bottling Co. v. Commissioner of Internal Revenue

KERNER, Circuit Judge.

The question presented by this petition for review is whether the Tax Court correctly upheld the Commissioner’s determination that in 1939 the taxpayer sustained a loss upon the sale of real estate which did not come within the scope of § 112(b)(1) of the Internal Revenue Code, 26 U.S.C.A. § 112(b), but was recognizable under § 112(a) thereof for the purpose of computing its excess profits tax credit based on an average base period net income.

The Tax Court held that the transaction was not an exchange protected from tax impact by § 112(b)(1) but was a sale which resulted…