Cabax Mills v. Commissioner
United States Tax Court
Petitioner acquired 98 percent of the stock of Snellstrom in April 1964. Snellstrom was liquidated in April 1965 and petitioner received in liquidation certain timber-cutting contracts that had been held by Snellstrom prior to April 1964. Petitioner cut timber under those contracts during the period May 1, 1965, through Dec. 31, 1965, and reported the profits therefrom as long-term capital gain under sec. 631(a). Held: Petitioner acquired the Snellstrom stock and…
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Petitioner acquired 98 percent of the stock of Snellstrom in April 1964. Snellstrom was liquidated in April 1965 and petitioner received in liquidation certain timber-cutting contracts that had been held by Snellstrom prior to April 1964. Petitioner cut timber under those contracts during the period May 1, 1965, through Dec. 31, 1965, and reported the profits therefrom as long-term capital gain under sec. 631(a). Held: Petitioner acquired the Snellstrom stock and timber-cutting contracts under circumstances provided in sec. 334(b)(2), I.R.C. 1954, and is entitled to use as its basis in the…
1Opinion of the Court
Drennen, Judge:
Respondent determined a deficiency in petitioner’s corporate income tax in the amount of $49,648.84 for its calendar year ended December 31, 1965. The issue presented for our decision is whether for purposes of section 631(a) of the Internal Revenue Code,1 petitioner held certain timber-cutting contracts, which it received in a liquidation distribution, for more than 6 months prior to January 1, 1965.
FINDINGS OF FACT
The majority of the facts have been stipulated and are so found. The parties have agreed on the following statements in the stipulation.
Cabax Mills (hereinafter…
2Cases cited16 opinions
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- Koppers Coal Co. v. CommissionerUnited States Tax Court · 1946
- Georgia-Pacific Corporation v. United StatesCourt of Appeals for the Fifth Circuit · 1959
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