Gregory v. Commissioner
United States Board of Tax Appeals
Petitioner, the only shareholder of U Company, caused A Company to be organized. U Company transferred assets, consisting of shares in M Company, to A Company, for which A Company issued all its shares to petitioner. A Company then liquidated by distributing its assets, consisting of shares in M Company, to petitioner, its only shareholder, and immediately dissolved. Petitioner then sold the shares in M Company.
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Petitioner, the only shareholder of U Company, caused A Company to be organized. U Company transferred assets, consisting of shares in M Company, to A Company, for which A Company issued all its shares to petitioner. A Company then liquidated by distributing its assets, consisting of shares in M Company, to petitioner, its only shareholder, and immediately dissolved. Petitioner then sold the shares in M Company. Held, A Company may not be disregarded, and tax to petitioner is predicated upon the statutory recognition of a reorganization, liquidation and sale, with consequent gain or loss, and…
1Opinion of the Court
OPINION.
Steenhagen :
The respondent determined a deficiency of $10,678.16 in the petitioner’s income tax for 1928, all of which is assailed by the petitioner on the ground that the respondent has erroneously treated $133,333.38 as a dividend from the United Mortgage Corporation. There is no dispute about the facts, both parties having agreed that they are essentially as set forth in the report of a revenue agent.
The petitioner was the owner of all the outstanding (5,000) shares of the United Mortgage Corporation. Of these, 3,300 shares had been purchased between October 1, 1920, and December…
2Cases cited3 opinions
- Bullen v. WisconsinSupreme Court of the United States · 1916
- Planters Cotton Oil Co. v. HopkinsSupreme Court of the United States · 1932
- People Ex Rel. Waclark Realty Co. v. WilliamsNew York Court of Appeals · 1910
3Cited by16 opinions
- Starr v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1936
- Edward Sec. Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Stires Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Celia Mazzei v. CommissionerUnited States Tax Court · 2018
- Wells v. CommissionerUnited States Board of Tax Appeals · 1933
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