Burnham v. Commissioner
United States Board of Tax Appeals
The word "securities" in section 112(b)(3), Revenue Act of 1928, which provides that "no gain or loss shall be recognized if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization", includes unsecured, confess-judgment promissory notes of a corporation, due on or before ten years after date, which were…
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The word "securities" in section 112(b)(3), Revenue Act of 1928, which provides that "no gain or loss shall be recognized if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization", includes unsecured, confess-judgment promissory notes of a corporation, due on or before ten years after date, which were received in consideration of loans made to the corporation by the owners of the notes.
1Opinion of the Court
OPINION.
Murdock:
The Commissioner determined deficiencies in income tax for the year 1929 as follows:
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The Commissioner conceded at the hearing that each petitioner had erroneously reported certain interest and profits on his return. The only issue for decision in each case is whether the petitioner is entitled to deduct a loss from the exchange of notes of the Courts Building Corporation for stock of that corporation in pursuance of the plan of reorganization of that corporation. The cases have been consolidated and the facts have been stipulated.
The petitioners owned practically…
2Cases cited1 opinion
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
3Cited by9 opinions
- Martin v. Chandis Securities Co.Court of Appeals for the Ninth Circuit · 1942
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Nye v. CommissionerUnited States Tax Court · 1968
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Burnham v. CommissionerUnited States Board of Tax Appeals · 1935
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