Cable Co. v. Commissioner
United States Board of Tax Appeals
Lake Cable, Inc., owned certain real property upon which Ohio real estate taxes became a lien in April 1936. After the lien attached directors of Lake Cable, Inc., with the approval of the stockholders, resolved to convey all the corporate assets to the petitioner in return for the assumption of its liabilities and the issuance to it of shares of petitioner's stock, and the resolution was duly carried out by the execution of a deed to the petitioner.
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Lake Cable, Inc., owned certain real property upon which Ohio real estate taxes became a lien in April 1936. After the lien attached directors of Lake Cable, Inc., with the approval of the stockholders, resolved to convey all the corporate assets to the petitioner in return for the assumption of its liabilities and the issuance to it of shares of petitioner's stock, and the resolution was duly carried out by the execution of a deed to the petitioner. The real estate taxes were billed to Lake Cable, Inc., but the petitioner paid them and claims a deduction for taxes paid. Held, on the facts,…
1Opinion of the Court
*87OPINION.
Smith :
In its return for the year 1936 the petitioner claimed as a deduction for taxes paid during that year the amount of $5,200.44. Of this amount the respondent disallowed the deduction of $2,403.87 and now contends in support of that determination that the payment of the latter amount by the petitioner did not constitute a payment of its taxes.
It has been held frequently that a vendee is not entitled to a deduction for taxes paid when the taxes in question were a charge against the land or a liability of the vendor prior to the date of sale. Lifson v. Commissioner (C. C. A., 8th…
2Cases cited2 opinions
- Ruedy v. Toledo Factories Co.Ohio Court of Appeals · 1939
- American Shipbuilding Co. v. Commonwealth S. S. Co.Court of Appeals for the Sixth Circuit · 1914
3Cited by1 opinion
- Cable Co. v. CommissionerUnited States Board of Tax Appeals · 1942