Mandel v. Commissioner
United States Tax Court
On a tax free split-off reorganization a building corporation issued its stock and bonds in exchange for approximately 35 percent of the assets of the old company, which as a part of the same transaction distributed the stock and bonds to its shareholders.
Read the full summary
On a tax free split-off reorganization a building corporation issued its stock and bonds in exchange for approximately 35 percent of the assets of the old company, which as a part of the same transaction distributed the stock and bonds to its shareholders. The major portion of the assets acquired by the building corporation had been acquired by the old company prior to 1913. At the date of the transfer the old company had accumulated earnings since March 1, 1913, of approximately $ 11,000,000. Held, the building corporation "inherited" approximately 35 percent of the old company's earned…
1Opinion of the Court
OPINION.
ARTJndell, Judge-.
Relying upon the principle first enunciated in the now well known Samóme case (Commissioner v. Sansome, 60 Fed. (2d) 931; certiorari denied, 287 U. S. 667) that accumulated earnings and profits of a transferor corporation follow its assets into the hands of a transferee on a tax-free reorganization, so as to be available for dividend distribution, the respondent has held that petitioners-stockholders herein are taxable in full upon the amounts received by them as a result of the 1939 and 1940 distributions.
It is the respondent’s position that the earned surplus of…
2Cases cited2 opinions
- Bazley v. CommissionerUnited States Tax Court · 1945
- Senior Inv. Corp. v. CommissionerUnited States Tax Court · 1943
3Cited by10 opinions
- Commissioner v. PhippsSupreme Court of the United States · 1949
- Slover v. CommissionerUnited States Tax Court · 1946
- Phipps v. CommissionerUnited States Tax Court · 1947
- Humpage v. CommissionerUnited States Tax Court · 1952
- General Artists Corp. v. CommissionerUnited States Tax Court · 1952
5 more not listed; retrieve them via the Exa API.