Long Island Water Corp. v. Commissioner
United States Tax Court
1. A, a public utility holding company, and M, an investment banking firm, agreed that M should acquire all of the capital stock of Q, an operating water company, and transfer it to petitioner, a newly organized corporation, in exchange for petitioner's stock and bonds. When these transactions were completed Q was merged into petitioner. M then exchanged the stock it held in petitioner for an agreed number of A's shares which were subsequently sold on the open market.
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1. A, a public utility holding company, and M, an investment banking firm, agreed that M should acquire all of the capital stock of Q, an operating water company, and transfer it to petitioner, a newly organized corporation, in exchange for petitioner's stock and bonds. When these transactions were completed Q was merged into petitioner. M then exchanged the stock it held in petitioner for an agreed number of A's shares which were subsequently sold on the open market. Prior to these steps taking place the stockholders of Q were in control of its assets. Afterwards A owned all of petitioner's…
1Opinion of the Court
OPINION.
Kern, Judge:
The primary issue in this case concerns the proper depreciation bases to petitioner of the properties formerly owned by the Queens, Boosevelt, and Baldwin Companies. Kespondent contends that these properties were acquired in connection with reorganizations as defined in either section 112(g) (1) (A) and (IT) of the Internal Revenue Code of 1939 or section 203(h) (1) (A) and (D) of the Revenue Act of 1924, and therefore the bases should be the same as in the hands of the transferor corporations. The petitioner contends that there were no statutory reorganizations and that…
2Cases cited18 opinions
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- Koppers Coal Co. v. CommissionerUnited States Tax Court · 1946
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3Cited by3 opinions
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- Long Island Water Corp. v. CommissionerUnited States Tax Court · 1961
- New York Fruit Auction Corp. v. CommissionerUnited States Tax Court · 1982