Terhune v. Commissioner
United States Board of Tax Appeals
1. Pursuant to a plan of recapitalization, petitioners' preferred stock in the Berkeley Woolen Co. was exchanged for cash and debentures. As an essential part of the exchange, the stock, when received, was canceled and retired.
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1. Pursuant to a plan of recapitalization, petitioners' preferred stock in the Berkeley Woolen Co. was exchanged for cash and debentures. As an essential part of the exchange, the stock, when received, was canceled and retired. Held, the total gain realized by each petitioner under section 111 of the Revenue Act of 1934 and recognized under section 112 is to be taken into account in computing net income, since the receipt of cash and debentures constituted a distribution in partial liquidation under section 115. 2. The stock of one of the petitioners in the McKown Orchard Co. became worthless…
1Opinion of the Court
WESLEY V. E. TERHUNE, PETITIONER, ET AL., 1v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Terhune v. Commissioner
Docket Nos. 93894, 93914-93920, 94088.
United States Board of Tax Appeals
40 B.T.A. 750; 1939 BTA LEXIS 804;
October 19, 1939, Promulgated
1. Pursuant to a plan of recapitalization, petitioners' preferred stock in the Berkeley Woolen Co. was exchanged for cash and debentures. As an essential part of the exchange, the stock, when received, was canceled and retired. Held, the total gain realized by each petitioner under section 111 of the Revenue Act of 1934 and recognized under section…
2Cases cited1 opinion
- Terhune v. CommissionerUnited States Board of Tax Appeals · 1939