Chicago Stadium Corp. v. Commissioner
United States Tax Court
The taxpayer corporation was formed and acquired assets of an insolvent predecessor pursuant to a reorganization plan carried out under section 77-B of the Bankruptcy Act. It issued shares and first mortgage bonds which were sold for cash and second mortgage bonds which were exchanged for the predecessor's first mortgage bonds of equal face value. The predecessor's stockholders received nothing.
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The taxpayer corporation was formed and acquired assets of an insolvent predecessor pursuant to a reorganization plan carried out under section 77-B of the Bankruptcy Act. It issued shares and first mortgage bonds which were sold for cash and second mortgage bonds which were exchanged for the predecessor's first mortgage bonds of equal face value. The predecessor's stockholders received nothing. (1) The predecessor's transfer of assets to the taxpayer, held, not a transaction on which no gain or loss was recognizable within the intendment of section 112 (b) (10), Internal Revenue Code,…
1Opinion of the Court
OPINION.
Johnson, Judge:
Petitioner’s position is that the transaction by which it acquired its assets from Chicago Stadium Corporation (Illinois) constituted a “reorganization” under section 112 (b) (10), Internal Revenue Code,1 and that accordingly the basis of those assets is the basis in the hands of the Illinois corporation under section 113 (a) (22).2 Respondent determined that the transaction did not constitute a “reorganization” under section 112 (b) (10) and that therefore the basis of petitioner’s assets should be predicated upon their cost to petitioner. Respondent’s argument is that…
2Cases cited1 opinion
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
3Cited by21 opinions
- Avco Mfg. Corp. v. CommissionerUnited States Tax Court · 1956
- Davis, Collector of Internal Revenue v. Bankhead Hotel, IncCourt of Appeals for the Fifth Circuit · 1954
- Atlas Oil & Refining Corp. v. CommissionerUnited States Tax Court · 1961
- Goldstein Bros., Inc. v. CommissionerUnited States Tax Court · 1955
- San Antonio Transit Co. v. CommissionerUnited States Tax Court · 1958
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