Goldwasser v. Commissioner
United States Board of Tax Appeals
1. Where stock of B corporation was exchanged for stock of C corporation, pursuant to a plan which contemplated the transfer of the assets of B to a subsidiary of C and the dissolution of B, the stock of C corporation was not stock of a corporation "a party to a reorganization" and the gain realized by a stockholder of B in the exchange is taxable. 2. Fair market value of C stock, and length of time the B stock was held by petitioner, determined. 3. Value of portion of C…
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1. Where stock of B corporation was exchanged for stock of C corporation, pursuant to a plan which contemplated the transfer of the assets of B to a subsidiary of C and the dissolution of B, the stock of C corporation was not stock of a corporation "a party to a reorganization" and the gain realized by a stockholder of B in the exchange is taxable. 2. Fair market value of C stock, and length of time the B stock was held by petitioner, determined. 3. Value of portion of C stock issued in name of petitioner but immediately transmitted by her to creditors of B for services rendered by them to…
1Opinion of the Court
*450OPINION.
Mellott:
The contract of September 18, 1936, embodied a “plan of reorganization” under the terms of which C. I. T. acquired all the stock of B. E. in exchange for 30,700 shares of its common stock. The plan was carried out and petitioner received common stock of C. I. T. in exchange for her common stock in B. E.
In her income tax return for 1936 petitioner treated the C. I. T. stock as received in a tax-free exchange under section 112 (b) (3) of *451the Revenue Act of 1936.2 Respondent determined that C. I. T. was not a “party to a reorganization.” He therefore treated the exchange as a…
2Cases cited6 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. Tex-Penn Oil Co.Supreme Court of the United States · 1937
- Helvering v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1942
- Groman v. CommissionerSupreme Court of the United States · 1937
1 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- King Enterprises, Inc. v. The United StatesUnited States Court of Claims · 1969
- Palmer v. CommissionerUnited States Tax Court · 1974
- Jackie L. And Janet G. McDonald v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1985
- Aaron L. Kolom and Serita Kolom v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Hirsch v. CommissionerUnited States Tax Court · 1968
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