CMI Int'l, Inc. v. Commissioner
United States Tax Court
P's wholly owned domestic subsidiary, D, participated in a debt-equity-swap transaction in which D exchanged an interest in Mexican U.S.-dollar-denominated debt for stock in D's Mexican subsidiary. On its consolidated 1988 tax return, P reported no gain or loss relating to the swap transaction. In the notice of deficiency, respondent determined that P recognized an $ 830,000 gain relating to the transaction.
Read the full summary
P's wholly owned domestic subsidiary, D, participated in a debt-equity-swap transaction in which D exchanged an interest in Mexican U.S.-dollar-denominated debt for stock in D's Mexican subsidiary. On its consolidated 1988 tax return, P reported no gain or loss relating to the swap transaction. In the notice of deficiency, respondent determined that P recognized an $ 830,000 gain relating to the transaction. HELD: Pursuant to sec. 367(a), I.R.C., and sec. 1.367(a)- 1T(b)(3)(i), Temporary Income Tax Regs., 51 Fed. Reg. 17939, P did not recognize any gain.
1Opinion of the Court
CMI INTERNATIONAL, INC. A MICHIGAN CORPORATION, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
CMI Int'l, Inc. v. Commissioner
No. 24752-92
United States Tax Court
113 T.C. 1; 1999 U.S. Tax Ct. LEXIS 27; 113 T.C. No. 1;
July 13, 1999, Filed
Decision will be entered for petitioner.
P's wholly owned domestic subsidiary, D, participated in a
debt-equity-swap transaction in which D exchanged an interest in
Mexican U.S.-dollar-denominated debt for stock in D's Mexican
subsidiary.
On its consolidated 1988 tax return, P reported no gain
or loss relating to the swap transaction. In the notice of
defici…
2Cases cited9 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Danielson v. CommissionerUnited States Tax Court · 1965
- North American Rayon Corporation, Formerly Known as North American Holding Corporation, Narco v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1994
- Estate of Durkin v. CommissionerUnited States Tax Court · 1992
4 more not listed; retrieve them via the Exa API.