Mandel Bros. v. Commissioner
United States Board of Tax Appeals
1. Taxpayer exchanged its capital stock for a mixed aggregate of tangible and intangible property. Held, that the amount thereof should be allocated to the classes of assets according to their cash value at the time paid in, and that the taxpayer may include in invested capital as paid-in surplus the excess of the actual cash value of the tangibles over the par value of the capital stock allocated thereto and good will to the extent of the par value of the stock allocated…
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1. Taxpayer exchanged its capital stock for a mixed aggregate of tangible and intangible property. Held, that the amount thereof should be allocated to the classes of assets according to their cash value at the time paid in, and that the taxpayer may include in invested capital as paid-in surplus the excess of the actual cash value of the tangibles over the par value of the capital stock allocated thereto and good will to the extent of the par value of the stock allocated thereto, subject to the limitations. Appeal of St. Louis Screw Co.,2 B.T.A. 649. 2. A sum paid to a prior tenant by the…
1Opinion of the Court
*347OPINION.
MoRRis:
The questions will be considered in the order in which they appear in our opening statement. The first question is whether the taxpayer is entitled to include in invested capital, subject to the limitations prescribed by the Eevenue Acts of 1917 and 1918, good will acquired from the predecessor partnership for capital stock. The taxpayer acquired from the partnership, a mixed aggregate of tangible and intangible property for -capital stock. The actual cash value at the date of acquisition of the tangible property, other than leaseholds, was, by the admission of the parties,…
2Cases cited3 opinions
- Beidler v. KingIllinois Supreme Court · 1904
- Mickel v. YorkIllinois Supreme Court · 1898
- Kuh v. O'ReillyIllinois Supreme Court · 1913
3Cited by3 opinions
- Challenger, Inc. v. CommissionerUnited States Tax Court · 1964
- Lexington Brewing Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Mandel Bros. v. CommissionerUnited States Board of Tax Appeals · 1926