Bird Management, Inc. v. Commissioner
United States Tax Court
1. T. corp. adopted a plan to sell its business assets and liquidate within a year. It attempted to bring itself within sec. 337, I.R.C. 1954, and distributed all of its known assets to its sole stockholder within that year. Thereafter, two checks were issued to it as tax refunds which were immediately deposited in the sole stockholder's bank account.
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1. T. corp. adopted a plan to sell its business assets and liquidate within a year. It attempted to bring itself within sec. 337, I.R.C. 1954, and distributed all of its known assets to its sole stockholder within that year. Thereafter, two checks were issued to it as tax refunds which were immediately deposited in the sole stockholder's bank account. It does not appear that T knew of its rights in respect of those refunds during the year, and its rights in respect of one of them had not yet matured. Held, the loss on sale of assets was nonrecognizable under sec. 337, in view of failure of…
1Opinion of the Court
OPINION
Baum, Judge:
1. Nonrecognition of Loss TJnder Section 337.— Petitioner claims that it has overpaid its income tax for the taxable year 1961 'because it took no deduction for a $248,201.23 loss sustained in that year on the bulk sale of its assets to the Maritime Oorp. Its contention in this respect represents a complete reversal of the position taken in its income tax returns where it stated that the transaction was governed by section 337 of the 1954 Code, which provides for nonrecognition of gain or loss on the sale of assets in connection with a plan of complete liquidation.1 Just…
2Cases cited23 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Geyer, Cornell & Newell, Inc. v. CommissionerUnited States Tax Court · 1946
- West Seattle National Bank of Seattle v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
- West Seattle Nat'l Bank v. CommissionerUnited States Tax Court · 1959
18 more not listed; retrieve them via the Exa API.
3Cited by25 opinions
- Knight-Ridder Newspapers, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1984
- Anders v. CommissionerUnited States Tax Court · 1967
- Dodson v. CommissionerUnited States Tax Court · 1969
- Schuster v. CommissionerUnited States Tax Court · 1968
- Vern Realty, Inc. v. CommissionerUnited States Tax Court · 1972
20 more not listed; retrieve them via the Exa API.