Claridge Apartments Co. v. Commissioner
United States Tax Court
1. Neither expenses incident to 77B reorganization assumed by transferee nor nominal stock interest in reorganized company accorded to stockholders of predecessor held to disqualify transaction as a "reorganization" under Revenue Act of 1934, section 112. Helvering v. Southwest Consolidated Corporation, 315 U.S. 194, distinguished.
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1. Neither expenses incident to 77B reorganization assumed by transferee nor nominal stock interest in reorganized company accorded to stockholders of predecessor held to disqualify transaction as a "reorganization" under Revenue Act of 1934, section 112. Helvering v. Southwest Consolidated Corporation, 315 U.S. 194, distinguished. Held, further, on facts exchange of property was solely for petitioner's stock. 2. Provisions of the Chandler Act relating to taxation of income resulting from reduction of indebtedness in reorganizations, held applicable to the entire calendar year 1938, and to…
1Opinion of the Court
OPINION.
Opper, Judge:
The first point in controversy is the correct basis for depreciation on petitioner’s property, the problem being whether that is cost to petitioner or its predecessor’s adjusted basis. The primary question is whether under Revenue Act of 1934, section 112, and particularly under the recent decisions of the Supreme Court1 interpreting it, there was a reorganization when, in a 77B proceeding, petitioner’s predecessor transferred to it its only asset, a building-called the Claridge Apartments, in exchange for the issuance to the predecessor’s creditors of 90 percent, and to…
2Cases cited11 opinions
- A. B. Kirschbaum Co. v. WallingSupreme Court of the United States · 1942
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Northern Pacific Railway Co. v. BoydSupreme Court of the United States · 1913
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
6 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Claridge Apartments Co. v. CommissionerSupreme Court of the United States · 1944
- Southland Ice Co. v. CommissionerUnited States Tax Court · 1945
- Alcazar Hotel v. CommissionerUnited States Tax Court · 1943
- Fifth Avenue-14th Street Corp. v. CommissionerUnited States Tax Court · 1943
- Roosevelt Hotel Co. v. CommissionerUnited States Tax Court · 1949
14 more not listed; retrieve them via the Exa API.