Fry v. Commissioner
United States Tax Court
1. Pursuant to a plan of reorganization, a state bank in 1933 subscribed to and received all of the capital stock of a newly organized national bank, except directors' qualifying shares, and the new bank acquired part of the old bank's assets. Immediately thereafter, the old bank was in control of the new as control is defined in section 112 (h) of the Internal Revenue Code.
Read the full summary
1. Pursuant to a plan of reorganization, a state bank in 1933 subscribed to and received all of the capital stock of a newly organized national bank, except directors' qualifying shares, and the new bank acquired part of the old bank's assets. Immediately thereafter, the old bank was in control of the new as control is defined in section 112 (h) of the Internal Revenue Code. The stock of the new bank was pledged to the Reconstruction Finance Corporation by the old bank to secure the loan it had received from RFC and used for the purchase of the new bank stock. In 1939 RFC released one-half of…
1Opinion of the Court
OPINION.
Tyson, Judge:
Respondent contends as to the first issue (a) that the distribution to petitioner by the old bank in 1939 of shares of stock in the new bank constituted a distribution in partial liquidation of the old bank under section 115 (i) of the Internal Revenue Code,1 and that consequently there was a gain of $1,035 realized by petitioner therefrom, which gain is taxable as a short term capital gain in accordance with the provisions of section 115 (c) of the Internal Revenue Code. More specifically, the respondent contends that the distribution was one “in partial liquidation”…
2Cases cited4 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Heller v. CommissionerUnited States Tax Court · 1943
- Morley Cypress Trust, Schedule "B" v. CommissionerUnited States Tax Court · 1944
- Hoboken Land & Improv. Co. v. CommissionerUnited States Board of Tax Appeals · 1942
3Cited by17 opinions
- Kelly v. CommissionerUnited States Tax Court · 1955
- Liddon v. CommissionerUnited States Tax Court · 1954
- June M. Carlberg, by Vida M. Frick, Guardian v. United StatesCourt of Appeals for the Eighth Circuit · 1960
- Schultz v. CommissionerUnited States Tax Court · 1968
- Spangler v. CommissionerUnited States Tax Court · 1952
12 more not listed; retrieve them via the Exa API.