First Nat'l Corp. v. Commissioner
United States Tax Court
1. Petitioner and four banks, all of the stock of which it owned, were members of an affiliated group of corporations. The F bank, also a member of this group, desired to acquire the four banks so that it might operate them as branches. On April 2, 1933, petitioner gave the F bank proxies to vote the stock of the four banks and the F bank took over their assets and assumed their liabilities on the following day.
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1. Petitioner and four banks, all of the stock of which it owned, were members of an affiliated group of corporations. The F bank, also a member of this group, desired to acquire the four banks so that it might operate them as branches. On April 2, 1933, petitioner gave the F bank proxies to vote the stock of the four banks and the F bank took over their assets and assumed their liabilities on the following day. Thereafter negotiations were carried on with reference to the price to be paid. They culminated in the execution of five contracts on April 18, 1933, under the terms of which…
1Opinion of the Court
OPINION.
Issue I.
Mellott, Judge:
Petitioner contends that the transaction involving the liquidation of the four banks was not closed and completed until December 31, 1937; that not until then could it determine how much it would receive upon its. investment in the stock of the four banks: that therefore it could not earlier determine whether it would sustain a loss or the amount thereof; and that its loss, measured by the difference between the aggregate of its investment in the stock and the aggregate of its recovery, was actually sustained in the year 1937. It also contends that the…
2Cases cited2 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Voehl v. Indemnity Insurance Co. of North AmericaSupreme Court of the United States · 1933
3Cited by3 opinions
- Andre Maximov, as Trustee for the Benefit of H. Robbin Fedden U/a Dated 10/24/47 v. United StatesCourt of Appeals for the Second Circuit · 1962
- First Nat'l Corp. v. CommissionerUnited States Tax Court · 1943
- Thompson v. CommissionerUnited States Tax Court · 1983