Guarantee Constr. Co. v. Commissioner
United States Board of Tax Appeals
1. A corporation which in 1909 purchased stock of another corporation and immediately sold it at cost, on condition that if the stock should not prove to be a good investment it would return the purchase price and take back the stock, is not entitled upon the repurchase in 1918 of the stock of such corporation, which at that time was still in existence, to deduct as a loss under section 234(a) the amount refunded to the purchasers under the conditional sale. 2. Operating…
Read the full summary
1. A corporation which in 1909 purchased stock of another corporation and immediately sold it at cost, on condition that if the stock should not prove to be a good investment it would return the purchase price and take back the stock, is not entitled upon the repurchase in 1918 of the stock of such corporation, which at that time was still in existence, to deduct as a loss under section 234(a) the amount refunded to the purchasers under the conditional sale. 2. Operating deficits during the pre-war period may not be deducted from paid-in capital in determining the average pre-war invested…
1Opinion of the Court
APPEAL OF GUARANTEE CONSTRUCTION CO.
Guarantee Constr. Co. v. Commissioner
Docket Nos. 1828, 1848.
United States Board of Tax Appeals
2 B.T.A. 1145; 1925 BTA LEXIS 2162;
October 30, 1925, Decided Submitted April 28, 1925.
1. A corporation which in 1909 purchased stock of another corporation and immediately sold it at cost, on condition that if the stock should not prove to be a good investment it would return the purchase price and take back the stock, is not entitled upon the repurchase in 1918 of the stock of such corporation, which at that time was still in existence, to deduct as a loss under…
2Cases cited1 opinion
- Guarantee Constr. Co. v. CommissionerUnited States Board of Tax Appeals · 1925