Simms v. Commissioner
United States Board of Tax Appeals
1. Petitioner transferred oil leases to a newly organized corporation in exchange for its entire capital stock, all of which stock, pursuant to prior agreements contemplating the creation of a second corporation to develop the leases, was thereafter transferred to the second corporation in exchange for part of its stock, and the remaining stock of the second corporation was sold to or through syndicate participants for cash.
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1. Petitioner transferred oil leases to a newly organized corporation in exchange for its entire capital stock, all of which stock, pursuant to prior agreements contemplating the creation of a second corporation to develop the leases, was thereafter transferred to the second corporation in exchange for part of its stock, and the remaining stock of the second corporation was sold to or through syndicate participants for cash. Held, under the Revenue Act of 1918, (a) that the first exchange was a separate and completed transaction, the gain or loss upon which must be computed on the difference…
1Opinion of the Court
*1009OPINION.
Marquette:
The major issue presented in these proceedings is what profit, if any, the petitioner realized through the transfer of certain oil leases on June 19, 1919, to a corporation for its entire capital stock, and the exchange of the foregoing stock on June 30, 1919, for stock in a second corporation. Stated briefly, the controversy arises on the basis of the following facts: During 1917, *10101918 and the early part of 1919, the petitioner acquired oil leases on approximately 421,000 acres of land at a cost of $972,012.94. (The petitioner had as an associate, Henry Oliver, who…
2Cases cited28 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
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3Cited by16 opinions
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- Ballwood Co. v. CommissionerUnited States Board of Tax Appeals · 1934
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