Fashion Park, Inc. v. Commissioner
United States Tax Court
Petitioner in the taxable year had outstanding an issue of debenture bonds of a stated face value of $ 50 each. These debentures it had issued in the course of a nontaxable reorganization in replacement for a similar number of shares of its preferred stock, also of a par and stated value of $ 50 per share.
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Petitioner in the taxable year had outstanding an issue of debenture bonds of a stated face value of $ 50 each. These debentures it had issued in the course of a nontaxable reorganization in replacement for a similar number of shares of its preferred stock, also of a par and stated value of $ 50 per share. This preferred stock had been issued at a price of $ 5 per share, and the difference of $ 45 per share between the actual cash consideration paid and the face value of the stock had been transferred by petitioner to its capital account from an account on its books denoted capital surplus.…
1Opinion of the Court
OPINION.
Bettce, Judge:
It is petitioner’s contention that cancellation of the 5 per cent $50 debentures which it acquired in the taxable years resulted in no taxable gain, as the price paid upon the acquisition was in each case in excess of the $5 per share paid in for the preferred stock for which they were exchanged. With respect to the debentures received as dividends from its affiliates, petitioner contends that these represented income only to the extent of their fair market value at the date of such receipt, which amount is included in its income in the year of receipt.
Respondent does…
2Cases cited11 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Bowers v. Kerbaugh-Empire Co.Supreme Court of the United States · 1926
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
6 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Commissioner v. TuftsSupreme Court of the United States · 1983
- Merkel v. CommissionerUnited States Tax Court · 1997
- Eleanor A. Bradford v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Capitol Coal Corp. v. CommissionerUnited States Tax Court · 1956
- Erie Lackawanna Railroad Company v. The United StatesUnited States Court of Claims · 1970
16 more not listed; retrieve them via the Exa API.