Orr Mills v. Commissioner
United States Tax Court
Petitioner's parent corporation, after an unsuccessful attempt to purchase the assets of Orr Cotton Mills, purchased all of the latter corporation's capital stock. Petitioner was organized as a wholly owned subsidiary, and the acquired stock was transferred to it. Thereupon, petitioner caused all of the assets of Orr Cotton Mills to be transferred to itself, and liquidated the acquired corporation.
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Petitioner's parent corporation, after an unsuccessful attempt to purchase the assets of Orr Cotton Mills, purchased all of the latter corporation's capital stock. Petitioner was organized as a wholly owned subsidiary, and the acquired stock was transferred to it. Thereupon, petitioner caused all of the assets of Orr Cotton Mills to be transferred to itself, and liquidated the acquired corporation. Held, that the series of steps constitutes one transaction, i. e., a purchase of assets, and the basis of the assets in the hands of petitioner is the purchase price paid by its parent for the…
1Opinion of the Court
The Commissioner determined a deficiency in income tax of $3,933.80 for the short taxable period December 2 to December 31, 1946. The sole question is whether, for purposes of depreciation, the basis of assets received by petitioner upon the liquidation of Orr Cotton Mills is the same as the transferor’s basis under sections 112 (b) (6) and 113 (a) (15), 1939 Code. '
FINDINGS OF FACT.
Petitioner, a corporation, was organized under the laws of South Carolina on December 2,1946. Its income tax return for the taxable period December 2 to December 31, 1946, was filed with the collector of internal…
2Cases cited7 opinions
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- Kanawha Gas & Utilities Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1954
- Koppers Coal Co. v. CommissionerUnited States Tax Court · 1946
2 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
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- United States v. Frank N. Mattison and Ida G. MattisonCourt of Appeals for the Ninth Circuit · 1959
- Frederick Steel Co. v. CommissionerUnited States Tax Court · 1964
- Southwell Combing Co. v. CommissionerUnited States Tax Court · 1958
- Cabax Mills v. CommissionerUnited States Tax Court · 1972
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