Adaskin v. Commissioner
United States Board of Tax Appeals
Taxpayer acquired assets at a cost of $105,000 which on the same day he transferred to a newly organized corporation in exchange for shares of preferred and common stock; later, on the same day, the corporation acquired other assets in exchange for shares of its common stock. Held, that the two transactions were separate.
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Taxpayer acquired assets at a cost of $105,000 which on the same day he transferred to a newly organized corporation in exchange for shares of preferred and common stock; later, on the same day, the corporation acquired other assets in exchange for shares of its common stock. Held, that the two transactions were separate. Held, further, that the evidence does not warrant a finding that the shares of stock received by the taxpayer had a fair market value in excess of the value of the assets transferred to it by the taxpayer, or that the taxpayer derived taxable income from the transaction.
1Opinion of the Court
*464OPINION.
Smith:
The sole question involved in this proceeding is whether the petitioner realized taxable gain under the provisions of section 202(b) of the Revenue Act of 1918 in connection with certain transactions which took place on December 5, 1919. Section 202 of the Revenue Act of 1918 provides a basis for determining gain or loss in connection with certain transactions and reads in part as follows:(b) When property is exchanged for other property, the property received in exchange shall for the purpose of determining gain or loss be treated as the equivalent of cash to the amount of its…
2Cases cited4 opinions
- Penn Match Co. v. HapgoodMassachusetts Supreme Judicial Court · 1886
- Anderson v. JohnsonSupreme Court of Rhode Island · 1923
- Winters v. Hub Min. Co.U.S. Circuit Court for the District of Idaho · 1893
- Ireland v. Globe Milling and Reduction Co.Supreme Court of Rhode Island · 1897
3Cited by7 opinions
- Simms v. CommissionerUnited States Board of Tax Appeals · 1933
- Holmby Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Ambassador Petroleum Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Adaskin v. CommissionerUnited States Board of Tax Appeals · 1927
- Ambassador Petroleum Co. v. CommissionerUnited States Board of Tax Appeals · 1933
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