Hall v. Commissioner
United States Board of Tax Appeals
EXCHANGE OF PROPERTY FOR STOCK - RECOGNITION OF GAIN. - Petitioner subscribed for all the common stock of a newly organized corporation and offered to exchange stock of another corporation, not then organized, as part payment and the balance in cash, conditional upon the corporation purchasing from him certain securities for an amount in excess of the cash owing on his subscription.
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EXCHANGE OF PROPERTY FOR STOCK - RECOGNITION OF GAIN. - Petitioner subscribed for all the common stock of a newly organized corporation and offered to exchange stock of another corporation, not then organized, as part payment and the balance in cash, conditional upon the corporation purchasing from him certain securities for an amount in excess of the cash owing on his subscription. The offer was accepted by resolution of the directors on August 2, 1928, but the exchange was not then actually completed. At that time persons other than petitioner had subscribed for a substantial portion of the…
1Opinion of the Court
*128OPINION.
ArtindelIí:
The parties have signed and submitted two stipulations covering the facts in great detail, so we have related only such facts as may lie necessary to an intelligent discussion of the question. The Commissioner has determined the deficiency on the ground that the petitioner realized a gain when he exchanged securities owned by him for stock of a newly organized corporation, while petitioner urges that he falls within the nonrecognition provisions of section 112 (b) (5)1 of the Revenue Act of 1928.
*129Pacific Bancorporation was a creature of petitioner and was organized on July…
2Cases cited3 opinions
- Burns v. CommissionerUnited States Board of Tax Appeals · 1934
- Tex-Penn Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Robinson v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by3 opinions
- Hall v. CommissionerUnited States Board of Tax Appeals · 1934
- T. T. Word Supply Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- W. & K. Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1938