Lodi Iron Works, Inc. v. Commissioner
United States Tax Court
1. A taxpayer cannot rely upon its alleged failure to comply with its own State law to avoid the effect of a Federal tax statute. 2. Assets received by the petitioner in exchange for stock were assets received in a nontaxable exchange within the meaning of section 112 (b) (5), I. R. C. 1939, and thus should be awarded the same basis for computing depreciation as they would have in the hands of the transferor. 3. Estoppel must be specially pleaded.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The sole question presented is whether respondent correctly determined that the assets received by petitioner from the Lodi Iron Works partnership in return for stock were assets received in a nontaxable exchange within the meaning of section 112 (b) (5), I. R. C. 1939,1 and thus should be awarded the same basis for computing depreciation as they would have in the hands of the transferor partnership.2
To fall within the provisions of section 112 (b) (5) the property must be transferred solely in exchange for stock or securities, the transferor or transferors must be…
2Cases cited6 opinions
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Osburn California Corporation v. WelchCourt of Appeals for the Ninth Circuit · 1930
- Rhode Island Hospital Trust Company v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1955
- Steere v. CommissionerUnited States Tax Court · 1954
- California Iron Yards Co. v. Commissioner of Internal Rev.Court of Appeals for the Ninth Circuit · 1931
1 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Rose v. CommissionerUnited States Tax Court · 1970
- Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
- Schwager v. CommissionerUnited States Tax Court · 1975
- Donald L. Evans and Joan Evans v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1971
- Hamrick v. CommissionerUnited States Tax Court · 1964
22 more not listed; retrieve them via the Exa API.