Cramer v. Commissioner
United States Tax Court
Amounts equivalent to fair value received by stockholders from wholly owned corporation for stock of three other wholly owned corporations, held, on facts, to result in capital gain and not in a distribution substantially equivalent to a taxable dividend under applicable sections of Internal Revenue Code, including section 115 prior to 1950 amendments, and section 112 (c) (2). Rodman Wanamaker Trust, 11 T. C. 365, affd. (C. A. 2) 178 F. 2d 10, followed.
1Opinion of the Court
OPINION.
Opper, Judge:
We are unable to distinguish the present facts from Rodman Wanamaker Trust, 11 T. C. 365, affd. (C. A. 3) 178 F. 2d 10. That section 115 (g), Internal Revenue Code, was later amended to cover some but not all transactions in which the stock of related corporations is sold to another corporation by its stockholders1 could not in any event affect the present situation. The amendment was expressly made applicable only to years ending subsequent to August 31, 1950. If respondent’s argument were valid that section 115 (a) defining a dividend2 is alone sufficient to make this…
2Cases cited10 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- United States v. KatzSupreme Court of the United States · 1926
- Palmer v. CommissionerSupreme Court of the United States · 1937
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
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3Cited by5 opinions
- Trianon Hotel Co. v. CommissionerUnited States Tax Court · 1958
- Citizens Bank & Trust Co. v. United StatesUnited States Court of Claims · 1978
- Brown v. United StatesDistrict Court, E.D. Michigan · 1960
- Cramer v. CommissionerUnited States Tax Court · 1953
- Trianon Hotel Co. v. CommissionerUnited States Tax Court · 1958