Atwood Grain & Supply Co. v. Commissioner
United States Tax Court
Petitioner was a patron in a farming cooperative which was merged with another cooperative. After the merger, petitioner exchanged participation certificates of the old cooperative for preferred stock in the merged cooperatives.
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Petitioner was a patron in a farming cooperative which was merged with another cooperative. After the merger, petitioner exchanged participation certificates of the old cooperative for preferred stock in the merged cooperatives. Held, the participation certificates constituted an equity interest in the cooperative not a debt, and any loss realized is not deductible as a bad debt under sec. 166(a) (2). Held, further: The exchange was not made pursuant to the merger of the cooperatives but was pursuant to a recapitalization which qualified as a nontaxable reorganization. Therefore, the loss…
1Opinion of the Court
Atwood Grain and Supply Co., an Illinois Corporation, Petitioner v. Commissioner of Internal Revenue, Respondent
Atwood Grain & Supply Co. v. Commissioner
Docket No. 6098-70
United States Tax Court
60 T.C. 412; 1973 U.S. Tax Ct. LEXIS 110; 60 T.C. No. 45;
June 12, 1973, Filed
Decision will be entered for the respondent.
Petitioner was a patron in a farming cooperative which was merged with another cooperative. After the merger, petitioner exchanged participation certificates of the old cooperative for preferred stock in the merged cooperatives. Held, the participation certificates constituted an…
2Cases cited17 opinions
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Rothensies v. Electric Storage Battery Co.Supreme Court of the United States · 1946
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Miele v. CommissionerUnited States Tax Court · 1971
- Long Poultry Farms, Incorporated v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
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