Liddon v. Commissioner
United States Tax Court
Reorganization -- Distribution in Liquidation -- Sec. 112 (c) (2) -- Sec. 115 (c), I. R. C. of 1939. -- An old corporation in liquidation sold some of its assets to a new corporation. At the time petitioners held more than 80 per cent of the stock in both corporations. Shortly thereafter petitioners acquired the remaining assets of the old corporation in exchange for their stock.
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Reorganization -- Distribution in Liquidation -- Sec. 112 (c) (2) -- Sec. 115 (c), I. R. C. of 1939. -- An old corporation in liquidation sold some of its assets to a new corporation. At the time petitioners held more than 80 per cent of the stock in both corporations. Shortly thereafter petitioners acquired the remaining assets of the old corporation in exchange for their stock. Held, that the liquidation of the old corporation was under a plan of reorganization, and the gain resulting from the liquidation of the old corporation was taxable to petitioners under section 112 (c) (2).
1Opinion of the Court
OPINION.
Johnson, Judge:
An epitomization of the facts will aid us in discussing this case. The old closely held corporation was organized in 1946; it engaged in a successful automobile business for 2 years. Prior to July 17,1948, the date of the surrender of the old corporate charter, the stock of the old corporation had been liquidated and some of its assets sold to a new corporation. This new corporation had been incorporated on May 1, 1948. The old corporation held a franchise to sell Pontiac automobiles, but this franchise was terminated prior to the liquidation of the old corporation.…
2Cases cited7 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Lewis v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Survaunt v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1947
- Lewis v. CommissionerUnited States Tax Court · 1948
- Fry v. CommissionerUnited States Tax Court · 1945
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3Cited by34 opinions
- South Texas Rice Warehouse Co. v. CommissionerUnited States Tax Court · 1965
- James Armour, Inc. v. CommissionerUnited States Tax Court · 1964
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
- William Liddon v. Commissioner of Internal Revenue, Maria Prothro Liddon v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Gallagher v. CommissionerUnited States Tax Court · 1962
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