Warner Co. v. Commissioner
United States Board of Tax Appeals
Purchase of stock for cash and preferred stock of the purchaser, followed by redemption of the preferred stock for cash and the liquidation of the companies the stock of which was so purchased - all within the year - does not constitute a reorganization, but the liquidation is a transaction on which gain or loss is recognized and the acquiring corporation may use cost to it of the properties acquired in liquidation as the basis for computing depreciation and depletion.
1Opinion of the Court
OPINION.
Aeundell:
These proceedings were consolidated for hearing and report and involve the redetermination of deficiencies of $2,789.30, $986.91 and $7,990.53 in income taxes of the Charles Warner Company for the respective years 1925, 1927 and 1928, which deficiencies have been asserted against petitioner as transferee of the assets of the Charles Warner Company.
The assets of the Charles Warner Company were transferred to petitioner in 1929 and petitioner concedes transferee liability, contesting only the amount. The single issue is the basis to be used for depreciation and depletion of…
2Cited by25 opinions
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- The South Bay Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- American Potash & Chemical Corporation v. The United StatesUnited States Court of Claims · 1968
- Kansas Sand & Concrete, Inc. v. CommissionerUnited States Tax Court · 1971
- Tennessee, Alabama & Georgia Ry. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
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