Epstein v. Commissioner
United States Board of Tax Appeals
1. Where two corporations merge or consolidate to form a new corporation, and thereafter shares of the new corporation acquired as a result of the ownership of shares in the old corporations are sold, the basis for gain or loss on the new shares is the total cost of the old shares divided by the number of new shares.
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1. Where two corporations merge or consolidate to form a new corporation, and thereafter shares of the new corporation acquired as a result of the ownership of shares in the old corporations are sold, the basis for gain or loss on the new shares is the total cost of the old shares divided by the number of new shares. Christian W. Von Gunten,28 B.T.A. 702; affd., 76 Fed.(2d) 670, followed. 2. Where there is a mere change in the par value of shares, the above rule is not applicable, and where the shares disposed of are not identified, the Commissioner did not err in applying his "first in,…
1Opinion of the Court
OPINION.
Murdock:
The Commissioner determined a deficiency of $27,476.45 in income tax for the year 1929. The parties are in agreement that *110the Commissioner erroneously disallowed a deduction for contributions. They are prepared to make a proper adjustment of that item following this report. The Board is asked to determine the basis applicable to shares of stock of five corporations, which shares the petitioner sold in the taxable year and, if it is material, to determine also what portion of the gain is capital gain and what portion is ordinary income. The facts are not in dispute and have…
2Cited by3 opinions
- Baker v. Commissioner (A)United States Board of Tax Appeals · 1938
- Epstein v. CommissionerUnited States Board of Tax Appeals · 1937
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1939