Bonham v. Commissioner
United States Board of Tax Appeals
1. The petitioner, owning the majority of stock in a banking corporation, transferred the stock to a second corporation for cash and stock of the latter. Held, that the provisions of section 112(c)(1) of the Revenue Act of 1928 are applicable and the gain from the transaction is recognized, but only in an amount which does not exceed the cash payment. 2. The petitioner acquired by inheritance a portion of the bank stock so transferred.
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1. The petitioner, owning the majority of stock in a banking corporation, transferred the stock to a second corporation for cash and stock of the latter. Held, that the provisions of section 112(c)(1) of the Revenue Act of 1928 are applicable and the gain from the transaction is recognized, but only in an amount which does not exceed the cash payment. 2. The petitioner acquired by inheritance a portion of the bank stock so transferred. The fair market value of the stock, on the date acquired, determined. 3. The fair market value of the stock received in exchange, as of the date of such…
1Opinion of the Court
*1103OPINION.
TURNER:
In his determination as originally made the respondent applied the provisions of subsection (c) (l)1 of section 112 of the Revenue Act of 1928, thereby limiting the petitioner’s taxable gain from the transaction in question to $67,500, the amount of cash received. The petitioner does not dispute the application of this provision of the statute to.the facts in this case, but alleges that if the proper basis for the bank stock, and the fair market value of the company stock received therefor are used in the computation, it is apparent that no taxable gain was realized.
By amended…
2Cases cited1 opinion
- Helvering v. WattsSupreme Court of the United States · 1935
3Cited by13 opinions
- White Farm Equipment Co. v. CommissionerUnited States Tax Court · 1973
- Commissioner of Internal Revenue v. Grover D. Turnbow and Ruth H. TurnbowCourt of Appeals for the Ninth Circuit · 1960
- Hegra Note Corp. v. CommissionerUnited States Tax Court · 1966
- Turnbow v. CommissionerUnited States Tax Court · 1959
- Bonham v. CommissionerUnited States Board of Tax Appeals · 1936
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