Manhattan General Equipment Co. v. Commissioner
United States Board of Tax Appeals
1. A corporation acquired a contract from an individual in an exchange upon which no gain or loss was recognized under the Revenue Act of 1921, and, under the Revenue Act of 1926, the basis for determining gain or loss to the corporation was the same as it would be in the hands of the transferor.
Read the full summary
1. A corporation acquired a contract from an individual in an exchange upon which no gain or loss was recognized under the Revenue Act of 1921, and, under the Revenue Act of 1926, the basis for determining gain or loss to the corporation was the same as it would be in the hands of the transferor. Held, in determining gain or loss resulting from cancellation of the contract prior to the end of its term, the basis should be reduced, not only by the deductions for exhaustion of the contract allowable to the corporation, but also by those allowable to the transferor. 2. Where a stockholder…
1Opinion of the Court
OPINION.
Murdock :
The taxes in controversy are income taxes for the years 1925 and 1926. The proceedings have been consolidated. The parties *396filed a stipulation of facts in which the affiliated status of the various petitioners and other pertinent facts are shown. There was no testimony or other evidence except a copy of a notice of deficiency.
The only issue, in so far as the year 1925 is concerned, is whether or not the basis for gain or loss to Artemas Ward, Inc., a corporation of New York, upon the cancellation of a certain contract, should be reduced by deductions for depreciation or…
2Cases cited8 opinions
- United States v. LudeySupreme Court of the United States · 1927
- United States v. FlannerySupreme Court of the United States · 1925
- Even Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Graves, Cox & Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Elliott-Granite Linen Corp. v. CommissionerUnited States Board of Tax Appeals · 1932
3 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Guy F. Atkinson Co. v. CommissionerUnited States Tax Court · 1984
- Guy F. Atkinson Co. v. CommissionerUnited States Tax Court · 1984
- Manhattan General Equipment Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- R. J. Reynolds Tobacco Co. v. CommissionerUnited States Board of Tax Appeals · 1937