Taylor-Wharton Iron & Steel Co. v. Commissioner
United States Tax Court
1. Petitioner in 1935 liquidated wholly owned subsidiaries whose operating losses in prior years had been availed of by petitioner in consolidated income tax returns.
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1. Petitioner in 1935 liquidated wholly owned subsidiaries whose operating losses in prior years had been availed of by petitioner in consolidated income tax returns. Held, in the computation of equity invested capital for excess profits tax purposes, petitioner's accumulated earnings and profits must be reduced by the entire amount of its losses sustained in the liquidations, computed without adjustment to basis by reason of the operating losses availed of in consolidated returns. 2. In 1938 petitioner liquidated another wholly owned subsidiary whose prior operating losses had been availed…
1Opinion of the Court
OPINION.
Kern, Judge-.
The principal question presented in this proceeding is whether petitioner, in computing its equity invested capital under the excess profits tax provisions of the statute in effect during the taxable year, must reduce its accumulated earnings and profits by amounts which it sustained as losses upon the liquidation of several of its wholly owned subsidiaries, undiminished by the prior annual operating losses of the subsidiaries which had been availed of by petitioner in the reduction of the consolidated income of itself and its subsidiaries reported by it for the years…
2Cases cited3 opinions
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Baltimore & Ohio Railroad v. United StatesSupreme Court of the United States · 1936
- Butter-Nut Baking Co. v. CommissionerUnited States Tax Court · 1944
3Cited by21 opinions
- Dallmeyer v. CommissionerUnited States Tax Court · 1950
- Bangor & A. R. Co. v. CommissionerUnited States Tax Court · 1951
- Capital Nat'l Bank v. CommissionerUnited States Tax Court · 1951
- Seiberling Rubber Co. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1948
- Henry C. Beck Co. v. CommissionerUnited States Tax Court · 1969
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