Commonwealth Container Corp. v. Commissioner
United States Tax Court
Persons owning 100 percent of the outstanding stock of Tri-City Container Corp. (180 shares) immediately before it was merged into petitioner owned 75 percent (or 900 of the 1,200 shares) of the outstanding stock of petitioner. Under the merger plan the stockholders of Tri-City received 1 share of stock of petitioner, or a total of 180 shares, in exchange for their stock of Tri-City.
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Persons owning 100 percent of the outstanding stock of Tri-City Container Corp. (180 shares) immediately before it was merged into petitioner owned 75 percent (or 900 of the 1,200 shares) of the outstanding stock of petitioner. Under the merger plan the stockholders of Tri-City received 1 share of stock of petitioner, or a total of 180 shares, in exchange for their stock of Tri-City. Held, the stockholders of Tri-City (immediately before the merger), as the result of owning stock of Tri-City, owned (immediately after the merger) less than 20 percent of the fair market value of the outstanding…
1Opinion of the Court
DeeNNEN, Judge:
Respondent determined deficiencies in petitioner’s income taxes for the calendar years 1961 and 1962 in the amounts of $66,597.10 and $69,310.14, respectively. The only issue is what part of the net operating loss carryover of Tri-City Container Corp. (hereinafter referred to as Tri-City), which merged into petitioner on or about June 21, 1961,1 may be included in petitioner’s net operating loss deduction for the years 1961 and 1962. Petitioner claims it is entitled to deduct the entire net operating loss carryover of Tri-City, as provided in section 381(a) (2) and (c) (1),…
2Cases cited5 opinions
- Barr v. United StatesSupreme Court of the United States · 1945
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- James Armour, Inc. v. CommissionerUnited States Tax Court · 1964
- Verito v. CommissionerUnited States Tax Court · 1965
- Miller v. CommissionerUnited States Tax Court · 1967
3Cited by11 opinions
- Norman Scott, Inc. v. CommissionerUnited States Tax Court · 1967
- World Service Life Insurance Company, as Corporate Successor to Stockman National Life Insurance Company v. United StatesCourt of Appeals for the Eighth Circuit · 1973
- American Bronze Corp. v. CommissionerUnited States Tax Court · 1975
- Commonwealth Container Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1968
- Kern's Bakery of Virginia, Inc. v. CommissionerUnited States Tax Court · 1977
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