Thalhimer Bros, Inc. v. Commissioner
United States Tax Court
Petitioner acquired control of a corporation engaged in a similar business by issuing its own shares in exchange for the shares of the acquired corporation. As a part of the bargain it agreed to repurchase its own shares at their book value at transferees' options. Said options were exercised, and petitioner immediately included the repurchased shares in a public offering where they were sold for substantially less than the option price.
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Petitioner acquired control of a corporation engaged in a similar business by issuing its own shares in exchange for the shares of the acquired corporation. As a part of the bargain it agreed to repurchase its own shares at their book value at transferees' options. Said options were exercised, and petitioner immediately included the repurchased shares in a public offering where they were sold for substantially less than the option price. Held: Petitioner's dealings in its own shares were entirely intracorporate and nonspeculative. Its speculation was in the stock and business of the…
1Opinion of the Court
Thalhimer Brothers, Incorporated, Petitioner v. Commissioner of Internal Revenue, Respondent
Thalhimer Bros, Inc. v. Commissioner
Docket No. 94476
United States Tax Court
52 T.C. 659; 1969 U.S. Tax Ct. LEXIS 91;
July 22, 1969, Filed
Decision will be entered under Rule 50.
Petitioner acquired control of a corporation engaged in a similar business by issuing its own shares in exchange for the shares of the acquired corporation. As a part of the bargain it agreed to repurchase its own shares at their book value at transferees' options. Said options were exercised, and petitioner immediately included…
2Cases cited15 opinions
- Helvering v. GowranSupreme Court of the United States · 1937
- Koshland v. HelveringSupreme Court of the United States · 1936
- Dr. Pepper Bottling Co. v. CommissionerUnited States Tax Court · 1942
- United States v. Anderson, Clayton & Co.Supreme Court of the United States · 1955
- Cluett, Peabody & Co. v. CommissionerUnited States Tax Court · 1944
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