Lanteen Medical Laboratories, Inc. v. Commissioner
United States Tax Court
1. Petitioner's basis for gain or loss on certain securities purchased in January and October 1937 and sold in 1941, held to be the original cost of such securities and not their fair market value on December 31, 1937, where the securities were intended to be purchased for petitioner's account with funds which its parent corporation owed it, but the securities were erroneously recorded on the parent's books, and the error was not discovered and corrected until December 31,…
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1. Petitioner's basis for gain or loss on certain securities purchased in January and October 1937 and sold in 1941, held to be the original cost of such securities and not their fair market value on December 31, 1937, where the securities were intended to be purchased for petitioner's account with funds which its parent corporation owed it, but the securities were erroneously recorded on the parent's books, and the error was not discovered and corrected until December 31, 1937, by a transfer to petitioner at cost. 2. Petitioner is engaged in the pharmaceutical manufacturing and distributing…
1Opinion of the Court
OPINION.
Akundell, Judge'.
Presumably because of the close relationship between the petitioner and the parent company, the respondent has determined that petitioner’s basis for gain or loss on the securities in question should be their fair market value of $39,759.38 on December 31,1937, rather than the $61,514.18 which petitioner actually paid. He cites Majestic Securities Corporation v. Commissioner, 120 Fed. (2d) 12, and New Hampshire Fire Insurance Co., 2 T. C. 708, in support of his position. The facts here present, however, are quite different from the facts in the cited cases, and they…
2Cases cited2 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- New Hampshire Fire Ins. Co. v. CommissionerUnited States Tax Court · 1943
3Cited by4 opinions
- Wood v. CommissionerUnited States Tax Court · 1989
- Guenther v. CommissionerUnited States Tax Court · 1987
- Lanteen Medical Laboratories, Inc. v. CommissionerUnited States Tax Court · 1948
- Wood v. CommissionerUnited States Tax Court · 1989