Skelton v. B. C. Land Co.

Supplemental Opinion on Denial of Rehearing delivered October 14, 1974

1. Taxation — deductions for losses — continuity of business- enterprise. — There is a continuity of business enterprise with respect to the right of a new corporation to deduct from post-merger income the economic loss of its constituent corporation when the income producing business has not been altered, enlarged or materially affected by the merger.

2. Taxation — deductions for losses — scope of statute. — Surviving corporation could not claim the operating loss carryover of the submerged corporation as an income tax…