Neville Coke & Chemical Co. v. Commissioner
United States Tax Court
Three, four, and five-year notes held by petitioner and exchanged in a reorganization of the debtor corporation under section 112 (g) (1) of the Revenue Act of 1936 for debentures and stock of the reorganized corporation, held not to constitute "securities" within section 112 (b) (3) of that act, and petitioner is taxable upon any gain accruing from that transaction.
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Three, four, and five-year notes held by petitioner and exchanged in a reorganization of the debtor corporation under section 112 (g) (1) of the Revenue Act of 1936 for debentures and stock of the reorganized corporation, held not to constitute "securities" within section 112 (b) (3) of that act, and petitioner is taxable upon any gain accruing from that transaction. Further held, that petitioner, having received in such transaction, in place of the notes, a new promise by the debtor to pay the same amount with interest, in the form of debentures having a fair market value equal to…
1Opinion of the Court
OPINION.
Leech, Judge:
The only issue here is with respect to the exchange by petitioner of its three, four, and five-year notes for debentures and stock of the debtor corporation in the 1935-1936 reorganization. No question is raised as to the tax consequence of petitioner’s exchange in that reorganization of its bonds, stock, and indebtedness other than that evidenced by these notes.
Petitioner contends that the three, four, and five-year notes which it exchanged for new debentures under the plan of reorganization constituted securities within the meaning of section 112 (b) (3) of the Revenue…
2Cases cited2 opinions
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Eckert v. BurnetSupreme Court of the United States · 1931
3Cited by9 opinions
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- Wellington Fund, Inc. v. CommissionerUnited States Tax Court · 1944
- Harrison v. CommissionerUnited States Tax Court · 1955
- Camp Wolters Enterprises v. CommissionerUnited States Tax Court · 1954
- Camp Wolters Enterprises v. CommissionerUnited States Tax Court · 1954
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