National Bellas Hess, Inc. v. Commissioner
United States Tax Court
1. In 1932 the petitioner acquired certain properties from its predecessor in a nontaxable exchange under section 112 (b) (4) of the Revenue Act of 1932 pursuant to a reorganization as defined in section 112 (i) (1) (B) of that Act. Held, the basis of the properties to the petitioner for equity invested capital purposes is the predecessor's basis.
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1. In 1932 the petitioner acquired certain properties from its predecessor in a nontaxable exchange under section 112 (b) (4) of the Revenue Act of 1932 pursuant to a reorganization as defined in section 112 (i) (1) (B) of that Act. Held, the basis of the properties to the petitioner for equity invested capital purposes is the predecessor's basis. Section 718 (a) (2), Internal Revenue Code, section 113 (a) (7) and (8) of the Revenue Act of 1932. 2. The petitioner may deduct the fair market value of its capital stock distributed to its employees during the taxable years 1943 and 1944 as…
1Opinion of the Court
OPINION.
Arundell, Judge:
The first question is the basis to the petitioner, for equity invested capital purposes, of certain properties acquired from its predecessor. The petitioner contends the properties were acquired in an exchange that was “non-taxable” under either section 112 (b) (4) or (5) of the Revenue Act of 1932,1 and therefore it takes its predecessor’s basis for the properties. Sec. 718 (a) (2) of the I. R. C., sec. 113 (a) (7) and (8) of the Revenue Act of 1932, Regs. 77, art. 598.2 The respondent denies that the transaction by which the petitioner acquired the properties was an…
2Cases cited5 opinions
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- West Texas Refining & D. Co. v. Commissioner of Int. Rev.Court of Appeals for the Tenth Circuit · 1933
- Scientific Instrument Co. v. CommissionerUnited States Tax Court · 1952
- Banner Mach. Co. v. RoutzahnCourt of Appeals for the Sixth Circuit · 1939
- Insull v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1937
3Cited by1 opinion
- National Bellas Hess, Inc. v. CommissionerUnited States Tax Court · 1953