Epstein v. Commissioner
United States Board of Tax Appeals
1. Where two corporations merge or consolidate to form a new corporation, and thereafter shares of the new corporation acquired as a result of the ownership of shares in the old corporations are sold, the basis for gain or loss on the new shares is the total cost of the old shares divided by the number of new shares.
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1. Where two corporations merge or consolidate to form a new corporation, and thereafter shares of the new corporation acquired as a result of the ownership of shares in the old corporations are sold, the basis for gain or loss on the new shares is the total cost of the old shares divided by the number of new shares. Christian W. Von Gunten,28 B.T.A. 702; affd., 76 Fed.(2d) 670, followed. 2. Where there is a mere change in the par value of shares, the above rule is not applicable, and where the shares disposed of are not identified, the Commissioner did not err in applying his "first in,…
1Opinion of the Court
JACOB EPSTEIN, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Epstein v. Commissioner
Docket No. 70099.
United States Board of Tax Appeals
36 B.T.A. 109; 1937 BTA LEXIS 769;
June 15, 1937, Promulgated
1. Where two corporations merge or consolidate to form a new corporation, and thereafter shares of the new corporation acquired as a result of the ownership of shares in the old corporations are sold, the basis for gain or loss on the new shares is the total cost of the old shares divided by the number of new shares. Christian W. Von Gunten,28 B.T.A. 702; affd., 76 Fed.(2d) 670, followed.
2Cases cited2 opinions
- Von Gunten v. CommissionerUnited States Board of Tax Appeals · 1933
- Epstein v. CommissionerUnited States Board of Tax Appeals · 1937