Merchants Nat'l Bank v. Commissioner
United States Tax Court
1. Petitioner, a national bank, was required by the Banking Act of 1933 to terminate, by June 16, 1934, its affiliation with a corporation dealing in securities. In May, 1934, assets of the affiliate, including shares of stock of a corporation, were transferred to petitioner as trustee, and about three years later the stock was transferred to petitioner as a commercial banking institution.
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1. Petitioner, a national bank, was required by the Banking Act of 1933 to terminate, by June 16, 1934, its affiliation with a corporation dealing in securities. In May, 1934, assets of the affiliate, including shares of stock of a corporation, were transferred to petitioner as trustee, and about three years later the stock was transferred to petitioner as a commercial banking institution. Held, that the loss sustained on the stock upon the liquidation of the corporation in 1943 was a long term capital loss. 2. In and prior to 1943 petitioner charged off with tax benefit the full amount of…
1Opinion of the Court
OPINION.
Disney, Judge:
Petitioner insists that the respondent should have followed the ruling made by him on September 7, 1943, and allowed the loss sustained by it on the Dorgan-McPhillips Packing Corporation stock as an ordinary loss. Eespondent asserts that the ruling is not applicable since the petitioner was not compelled to acquire the stock and did not acquire the asset in direct liquidation of the Merchants Securities Corporation. Petitioner argues that the intervening trust does 'not make the situation any different from what it would have been if it had received the assets directly…
2Cases cited3 opinions
- Switlik v. CommissionerUnited States Tax Court · 1949
- Rockford Varnish Co. v. CommissionerUnited States Tax Court · 1947
- Rice Drug Co. v. CommissionerUnited States Tax Court · 1948
3Cited by29 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Mayfair Minerals, Inc. v. CommissionerUnited States Tax Court · 1971
- Bresler v. CommissionerUnited States Tax Court · 1975
- Citizens Federal Savings and Loan Association of Cleveland v. United StatesCourt of Appeals for the Federal Circuit · 1961
- Unvert v. CommissionerUnited States Tax Court · 1979
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