Spangler v. Commissioner
United States Board of Tax Appeals
REORGANIZATION - RECOGNITION OF GAIN OR LOSS. - A corporation, a national bank, transferred to a new corporation which it caused to be organized, part of its assets, to wit, $300,000 in cash, in exchange for all of the new company's stock, which it immediately distributed to its stockholders in the form of beneficial interests, without surrender of their stock.
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REORGANIZATION - RECOGNITION OF GAIN OR LOSS. - A corporation, a national bank, transferred to a new corporation which it caused to be organized, part of its assets, to wit, $300,000 in cash, in exchange for all of the new company's stock, which it immediately distributed to its stockholders in the form of beneficial interests, without surrender of their stock. Held, this was a reorganization under section 112(i)(1)(B), Revenue Act of 1928, and that no gain to the stockholders may be recognized from the receipt of their beneficial interests in the new stock. Sec. 112(g); John G. Lonsdale,11…
1Opinion of the Court
*266OPINION.
Black :
In the stipulation it was agreed that either party thereto might object to the relevancy or materiality of any of the facts stipulated. At the hearing, petitioners objected to the minutes of the board of directors’ meeting, of December 7, 1927 (Exhibit A of the stipulation) and to the notice of the annual meeting of the stockholders, dated December 9, 1927 (Exhibit B of the stipulation) and to the stockholders’ consent agreement dated December —, 1927 (Exhibit C of the stipulation). Petitioners’ objection to the foregoing evidence was to the effect that the plan of declaring a…
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3Cited by2 opinions
- Gross v. CommissionerUnited States Board of Tax Appeals · 1936
- Spangler v. CommissionerUnited States Board of Tax Appeals · 1933