Fruit Belt Telephone Co. v. Commissioner
United States Board of Tax Appeals
Held, under the evidence, that the corporation sold its assets to its stockholders, and their subsequent sale to another does not give rise to taxable gain to the corporation.
1Opinion of the Court
*441OPINION.
Teammell:
The real question in this case is whether the petitioner, Fruit Belt Telephone Company, sold its assets to its stockholders in good faith, or whether it actually made the sale to the Southern Bell Telephone Company.
The Commissioner takes the position that the corporation really sold its assets to the Southern Bell Telephone Company or in any event did not sell them to Evans and James in good faith.
On this question, we think the evidence is perfectly clear that the assets were sold to Evans and James and that they sold them to the Southern Bell Telephone Company. So long as…
2Cited by14 opinions
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- Barber-Greene Americas, Inc. v. CommissionerUnited States Tax Court · 1960
- Nace Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Atchison, T. & S. F. R. Co. v. CommissionerUnited States Tax Court · 1961
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