Conservative Gas Co. v. Commissioner
United States Board of Tax Appeals
The facts revealing no negotiation of an agreement or commitment to sell part of the assets of a corporation to a third party prior to the transfer of the assets to a trustee for the benefit of stockholders to whom the corporation had declared a liquidating dividend in kind, held that the subsequent sale by the trustee was not a sale by the corporation so as to make the profit thereon taxable to the corporation rather than to the stockholders to whom the proceeds of the sale…
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The facts revealing no negotiation of an agreement or commitment to sell part of the assets of a corporation to a third party prior to the transfer of the assets to a trustee for the benefit of stockholders to whom the corporation had declared a liquidating dividend in kind, held that the subsequent sale by the trustee was not a sale by the corporation so as to make the profit thereon taxable to the corporation rather than to the stockholders to whom the proceeds of the sale were distributed.
1Opinion of the Court
OPINION.
Van Fossan:
In this case we are asked to relieve taxpayer of a deficiency of $6,633.07 for the year 1930.' The question is whether respondent was correct in holding that a profit of $71,000 consequent on a sale of assets was taxable to the corporation rather than to its stockholders. There is no dispute over the amount of the profit. The proceeding was submitted on stipulated facts.
Taxpayer is a West Virginia corporation, with authorized capital stock of $50,000, the shares being $100 par value, organized for the purpose of exploring and drilling for, producing, and marketing oil and…
2Cases cited4 opinions
- Nace Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Taylor Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Fruit Belt Telephone Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- S. A. MacQueen Co. v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by4 opinions
- Kaufman v. CommissionerUnited States Tax Court · 1971
- Conservative Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Kaufman v. CommissionerUnited States Tax Court · 1971
- Martin S. Ackerman Foundation v. CommissionerUnited States Tax Court · 1986