Holstein v. Commissioner
United States Tax Court
A newly organized corporation issued to two persons a total of 16,500 shares of $ 1 per share par value non-voting preferred stock and 210 shares of $ 1 per share par value voting common stock in exchange for real property of the fair market value of $ 16,710. On the same day, and as part of the same plan, it issued 105 shares of the common stock for cash at par to each of two other persons. No other shares were ever issued by the corporation.
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A newly organized corporation issued to two persons a total of 16,500 shares of $ 1 per share par value non-voting preferred stock and 210 shares of $ 1 per share par value voting common stock in exchange for real property of the fair market value of $ 16,710. On the same day, and as part of the same plan, it issued 105 shares of the common stock for cash at par to each of two other persons. No other shares were ever issued by the corporation. Held, the transaction constituted a nontaxable exchange, and, for the purpose of computing gain on sale, the basis of the real property in the hands of…
1Opinion of the Court
OPINION.
Raum, Judge:
Tbe petitioners aré transferees of La Habra Orange Mesa, a California corporation. The income tax deficiencies in controversy were determined against the corporation in the amounts of $2,211.60 for tbe year 1949 and $1,484.56 for the period January 1, 1950, to April 28, 1950. Petitioners do not contest their liability as transferees; the correctness of the deficiencies against the corporation only is involved. The facts have been completely stipulated in two stipulations which are hereby adopted as our findings.
La Habra Orange Mesa was incorporated on February 2, 1949, and…
2Cases cited7 opinions
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Portland Oil Co. v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1940
- Halliburton v. CommissionerCourt of Appeals for the Ninth Circuit · 1935
- Diescher v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
- United Carbon Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1937
2 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Nye v. CommissionerUnited States Tax Court · 1968
- Estate of Miller v. CommissionerUnited States Tax Court · 1955
- Hamrick v. CommissionerUnited States Tax Court · 1964
- Kamborian v. CommissionerUnited States Tax Court · 1971
- Davey Co. v. CommissionerUnited States Tax Court · 1959
7 more not listed; retrieve them via the Exa API.