Hollywood, Inc. v. Commissioner
United States Tax Court
Petitioner's acquisition of property from two transferor-stockholders in exchange for its obligation to pay for the properties what it received upon sale up to an agreed amount, held to create a basis of its cost, the transaction not constituting a tax-free exchange under Internal Revenue Code, section 112 (b) (4) or (b) (5), nor a capital contribution under Internal Revenue Code, section 113 (a) (8) (B).
1Opinion of the Court
OPINION.
Oppee, Judge:
The controversy between the parties is as to whether certain properties sold by petitioner in the tax year were acquired by it under such circumstances that the basis for gain or loss to be applied is the substituted basis of petitioner’s transferors or its own cost. Without attempting to restate in detail the circumstances under which the properties were obtained, the salient characteristics of the transaction were that petitioner’s transferors, who were its stockholders, turned the properties in question over to it, along with many other parcels, under an agreement that…
2Cases cited3 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Meyer v. Nator Holding Co.Supreme Court of Florida · 1931
- Smith v. Loftis Plumbing & Heating Co.Supreme Court of Florida · 1933
3Cited by1 opinion
- Hollywood, Inc. v. CommissionerUnited States Tax Court · 1948