Stock Yards Bank v. Commissioner
United States Board of Tax Appeals
1. What the parties actually do, i.e., the substance of an act rather than its mere form, is the controlling element in matters of income taxation. Weiss v. Stearn,265 U.S. 242. 2. Upon the record, held the petitioner's stockholders sold their stock to a competitor bank, who then took over petitioner's assets in complete liquidation of its affairs, in which liquidation petitioner realized neither a gain nor a loss.
1Opinion of the Court
*968OPINION.
Love :
The principal issue in this proceeding is whether any gain or loss was recognizable to petitioner in the transfer of its assets, property and good will to the Trust Company.
The respondent relies upon the contract of sale between petitioner and the Trust Company, which was approved by both the stockholders and directors of each contracting party.
Petitioner contends that the manner in which the stock was purchased from its old stockholders and the subsequent transfer of its assets, property and good will to the Trust Company amounted to a “ reorganization ” as that term is defined…
2Cases cited1 opinion
- Weiss v. StearnSupreme Court of the United States · 1924
3Cited by1 opinion
- Stock Yards Bank v. CommissionerUnited States Board of Tax Appeals · 1932