Henderson Overland Co. v. Commissioner
United States Board of Tax Appeals
In the case of property acquired in exchange for stock prior to March 3, 1917, if the value thereof is clearly and substantially in excess of the par value of the stock exchanged, such excess may be treated as paid-in surplus in the computation of invested capital. Value of property acquired, determined. The petitioner acquired a lot of the value of $165,000. The lot was acquired as a site for a garage building.
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In the case of property acquired in exchange for stock prior to March 3, 1917, if the value thereof is clearly and substantially in excess of the par value of the stock exchanged, such excess may be treated as paid-in surplus in the computation of invested capital. Value of property acquired, determined. The petitioner acquired a lot of the value of $165,000. The lot was acquired as a site for a garage building. It was subsequently sold pursuant to a decree issued in a condemnation proceeding and a portion of the proceeds of the sale within 60 days after receipt was expended in the purchase…
1Opinion of the Court
*1090OPINION.
Green:
The first issue relates to the value for invested capital purposes of Lot No. 417, City of Youngstown, State of Ohio, which the petitioner acquired for stock. The answer avers that the property for invested capital purposes should be taken at its cost to the transferror as provided in section 331 of the Revenue Act of 1918. This position is not well founded for the reason that the petitioner acquired the property prior to March 3, 1917. If the actual cash value of tangible property at the time paid in for stock is shown to have been clearly and substantially in excess of the par…
2Cited by6 opinions
- Loco Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Descartes v. Tribunal de Contribuciones de Puerto RicoSupreme Court of Puerto Rico · 1953
- Templeton v. CommissionerUnited States Tax Court · 1976
- Henderson Overland Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Luis Descartes v. Tax Court of Puerto RicoSupreme Court of Puerto Rico · 1953
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