Mullins v. Commissioner
United States Board of Tax Appeals
1. Pursuant to agreements entered into by the principal stockholder of a corporation, having control of all the stock, with the corporation and with investment bankers, a new corporation was organized; the old corporation sold its property and assets to the new corporation for cash and distributed the cash to its stockholders pro rata; the principal stockholder, for himself and other stockholders, pro rata, purchased from the new company common and preferred stock for cash…
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1. Pursuant to agreements entered into by the principal stockholder of a corporation, having control of all the stock, with the corporation and with investment bankers, a new corporation was organized; the old corporation sold its property and assets to the new corporation for cash and distributed the cash to its stockholders pro rata; the principal stockholder, for himself and other stockholders, pro rata, purchased from the new company common and preferred stock for cash and sold the preferred stock at a discount to the bankers for cash; the bankers purchased from the new company common…
1Opinion of the Court
*432OPINION.
Van Fossan :
This proceeding presents substantially only one question for determination; namely, whether or not the series of transactions as a result of which the petitioner acquired $873,260 in cash and 24,788 shares of common stock in the New Company constituted an exchange of stock in the Old Company for cash and stock in the New Company; that is, an exchange of property for other property, within the meaning of section 202 (b) of the Revenue Act of 1918. Only an affirmative answer to this question necessitates a determination of the fair market value of the common stock of the New…
2Cases cited2 opinions
- Carroll v. United StatesSupreme Court of the United States · 1925
- United States v. IshamSupreme Court of the United States · 1873
3Cited by4 opinions
- Levi v. United StatesUnited States Court of Claims · 1936
- United States v. Galveston-Houston Electric Co.Court of Appeals for the First Circuit · 1936
- National Bank of Commerce of Norfolk v. United StatesDistrict Court, E.D. Virginia · 1958
- Mullins v. CommissionerUnited States Board of Tax Appeals · 1928