Clarksdale Rubber Co. v. Commissioner
United States Tax Court
Petitioner, a financially distressed producer of rubber products, was acquired by Cooper, who leased petitioner's assets and transferred its production and sales activities to a newly formed sister subsidiary until petitioner's financial position was improved. Cooper then caused the production and sales activities to be returned to petitioner and it continued the manufacture and sale of rubber products as before.
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Petitioner, a financially distressed producer of rubber products, was acquired by Cooper, who leased petitioner's assets and transferred its production and sales activities to a newly formed sister subsidiary until petitioner's financial position was improved. Cooper then caused the production and sales activities to be returned to petitioner and it continued the manufacture and sale of rubber products as before. Held: 1. Cooper did not purchase petitioner for the principal purpose of avoiding Federal income taxes. Sec. 269(a), I.R.C. 1954, inapplicable. 2. Libson Shops, Inc. v. Koehler, 353…
1Opinion of the Court
DawsoN, Judge:
Respondent determined the following deficiencies in petitioner’s income taxes:
TYM Dec. SI— Deficiency
1958- $104,584.25
1959- 76,461. 63
1960- 8,109.18
Two issues raised in the notice of deficiency have been conceded by the parties. There remains for decision only the question as to whether petitioner is entitled to net operating loss carryover deductions claimed in its returns for the taxable years 1958 and 1959.
EINDINGS OK FACT
Some of the facts have been stipulated by the parties and are so found.
Clarksdale Rubber Co. (hereafter called petitioner) was incorporated under the laws…
2Cases cited40 opinions
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Seaboard Commercial Corp. v. CommissionerUnited States Tax Court · 1957
- Mill Ridge Coal Company v. George D. Patterson, District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Commissioner of Internal Revenue v. Goodwyn Crockery CompanyCourt of Appeals for the Sixth Circuit · 1963
- Humacid Co. v. CommissionerUnited States Tax Court · 1964
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3Cited by24 opinions
- United States v. Adkins-Phelps, IncorporatedCourt of Appeals for the Eighth Circuit · 1968
- Canaveral Int'l Corp. v. CommissionerUnited States Tax Court · 1974
- Coast Quality Construction Corporation and Subsidiaries v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- Commissioner of Internal Revenue v. Barclay Jewelry, Inc.Court of Appeals for the First Circuit · 1966
- Six Seam Company, Inc., (73-2169), Plaintiff-Cross-Appellant (73-2170) v. United States of America, (73-2169), Defendant-Cross-Appellee (73-2170)Court of Appeals for the Sixth Circuit · 1975
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