Prudential Loan Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner, succeeding to assets of predecessor corporation in a nontaxable reorganization under section 112, Revenue Act of 1928, held, on the facts to be entitled to offset against its income a loss on the sale of transferred property computed by using predecessor's basis, where the evidence sufficiently demonstrates ownership of the property by predecessor and transfer to petitioner prior to consummation of the sale, which had been previously contracted for by…
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1. Petitioner, succeeding to assets of predecessor corporation in a nontaxable reorganization under section 112, Revenue Act of 1928, held, on the facts to be entitled to offset against its income a loss on the sale of transferred property computed by using predecessor's basis, where the evidence sufficiently demonstrates ownership of the property by predecessor and transfer to petitioner prior to consummation of the sale, which had been previously contracted for by predecessor's principal stockholders. 2. Property (shares of stock) found not to have been worthless in or prior to year of…
1Opinion of the Court
*979OPINION.
Opper:
Respondent urges three grounds for sustaining his determination : First, that the sale of Western Bond stock by petitioner was in fact not what it appears to be, and should be treated as a nullity and entirely disregarded; second, that this stock became worthless in a prior year and no loss is allowable for the year 1929; and, third, that the loss if otherwise proper is not deductible since it was not attributable to the petitioner’s regular business.
It is not entirely clear upon what ground respondent urges that the transaction was not in fact a sale. There is some intimation…
2Cases cited7 opinions
- Hill v. United States Ex Rel. WamplerSupreme Court of the United States · 1936
- Wenban Estate, Inc. v. HewlettCalifornia Supreme Court · 1924
- Okmulgee Window Glass Co. v. FrinkCourt of Appeals for the Eighth Circuit · 1918
- Dairy Co-Operative Ass'n v. Brandes CreameryOregon Supreme Court · 1934
- Vawter v. Rogue River Valley Canning Co.Oregon Supreme Court · 1928
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3Cited by1 opinion
- Prudential Loan Co. v. CommissionerUnited States Board of Tax Appeals · 1938