Duncan v. Commissioner
United States Tax Court
Recognition of Gain or Loss -- Section 112 (b) (5). -- The surrender of judgment claims to a debtor corporation in consideration of the issuance to the creditors of stock of the debtor which gave the old creditors control is a transfer in exchange within section 112 (b) (5).
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined deficiencies in income tax for the calendar year 1941, as follows:
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The petitioners contend that a transaction in which a corporation issued its common stock to them in settlement of $270,000 of judgment claims which the petitioners held against the corporation was within the provisions of section 112 (b) (5) of the Internal Revenue Code, so that no gain or loss to the petitioners can be recognized. They make several alternative contentions. The facts relating to the possible application of section 112 (b) (5) have been…
2Cases cited1 opinion
- Helvering v. Cement Investors, Inc.Supreme Court of the United States · 1942
3Cited by19 opinions
- E. I. Du Pont de Nemours & Co. v. United StatesUnited States Court of Claims · 1973
- Seiberling Rubber Co. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1948
- Principal Life Insurance v. United StatesUnited States Court of Federal Claims · 2006
- D. N. Stafford and Flora C. Stafford v. United StatesCourt of Appeals for the Fifth Circuit · 1980
- Norman Scott, Inc. v. CommissionerUnited States Tax Court · 1967
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