Howell v. Commissioner
United States Tax Court
In 1946 the directors of P, a real estate corporation, adopted a plan of liquidation. During 1946-1956 P sold all of its property except one tract and made various distributions to its shareholders designated as "liquidating" or "partial liquidating" dividends. It acquired no new property. On May 23, 1958, P's directors adopted a plan of "Final Liquidation" which was to be completed within 12-months, and it in fact sold the remaining tract during that period.
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In 1946 the directors of P, a real estate corporation, adopted a plan of liquidation. During 1946-1956 P sold all of its property except one tract and made various distributions to its shareholders designated as "liquidating" or "partial liquidating" dividends. It acquired no new property. On May 23, 1958, P's directors adopted a plan of "Final Liquidation" which was to be completed within 12-months, and it in fact sold the remaining tract during that period. Held, that the 1958 "plan" and P's activities subsequent to its adoption were merely part of P's 1946 plan of liquidation; therefore,…
1Opinion of the Court
OPINION
Raum, Judge:
The narrow question before us is whether Park Lake, at the time of the resolution of May 23,1958, was already operating under a much earlier (1946) resolution calling for complete liquidation, so as to render inapplicable the nonrecognition provisions of section 337(a) of the 1954 Code. Section 337(a) provides:
SEC. 337. GAIN OR LOSS ON SALES OR EXCHANGES IN CONNECTION WITH CERTAIN LIQUIDATIONS.(a) General Rule. — If—(1) a corporation adopts a plan of complete liquidation on or after June 22, 1954, and(2) within the 12-month period beginning on the date of the adoption of…
2Cases cited5 opinions
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- T. T. Word Supply Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Virginia Ice & Freezing Corp. v. CommissionerUnited States Tax Court · 1958
- Bynum v. CommissionerCourt of Appeals for the Fifth Circuit · 1940
- City Bank of Washington v. CommissionerUnited States Tax Court · 1962
3Cited by6 opinions
- Moffatt v. CommissionerUnited States Tax Court · 1964
- West Street-Erie Boulevard Corporation v. United StatesCourt of Appeals for the Second Circuit · 1969
- Howell v. CommissionerUnited States Tax Court · 1963
- Mitchell v. CommissionerUnited States Tax Court · 1972
- Moffatt v. CommissionerUnited States Tax Court · 1964
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