J. I. Morgan, Inc. v. Commissioner
United States Tax Court
1. Petitioner corporation acquired assets from its majority stockholder pursuant to an installment sales contract under the terms of which the consideration was to be paid in 7 annual installments. Title to the assets was reserved in the transferors until the full purchase price was paid.
Read the full summary
1. Petitioner corporation acquired assets from its majority stockholder pursuant to an installment sales contract under the terms of which the consideration was to be paid in 7 annual installments. Title to the assets was reserved in the transferors until the full purchase price was paid. Held: (a) That the transaction by which the assets were conveyed to the corporation was a sale and not an exchange of assets for stock within the meaning of section 112 (b) (5), I. R. C. 1939, and the gain realized by the transferors is recognized. (b) That the basis to the transferee corporation of the…
1Opinion of the Court
Withev, Judge:
The respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows:
[[Image here]]
The issues presented for our determination are the correctness of the respondent’s action (1) in determining that the acquisition of assets by the petitioner J. I. Morgan, Inc., in exchange for an installment contract constituted a nontaxable exchange of property for stock within the meaning of section 112 (b) (5) of the Internal Bevenue Code of 1939; (2) in determining that the assets acquired by J. I. Morgan, Inc., retain the same basis as they had in the…
2Cases cited7 opinions
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Tauber v. CommissionerUnited States Tax Court · 1955
- Commissioner of Internal Revenue v. CaulkinsCourt of Appeals for the Sixth Circuit · 1944
- Caulkins v. CommissionerUnited States Tax Court · 1943
- Brown v. CommissionerUnited States Tax Court · 1956
2 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Stanton v. CommissionerUnited States Tax Court · 1960
- American Processing and Sales Company v. The United StatesUnited States Court of Claims · 1967
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Curry v. CommissionerUnited States Tax Court · 1965
- Schwartz v. CommissionerUnited States Tax Court · 1963
21 more not listed; retrieve them via the Exa API.