Pebble Springs Distilling Co. v. Commissioner
United States Tax Court
During the course of a liquidation which commenced in 1948, petitioner sold all of its noninventory assets to a corporation wholly owned by its controlling stockholders. The new corporation had broad powers to carry on the same business as petitioner as well as to conduct a real estate and other businesses. It rented the property to various tenants and was still in existence at the time of the hearing.
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During the course of a liquidation which commenced in 1948, petitioner sold all of its noninventory assets to a corporation wholly owned by its controlling stockholders. The new corporation had broad powers to carry on the same business as petitioner as well as to conduct a real estate and other businesses. It rented the property to various tenants and was still in existence at the time of the hearing. The price at which the noninventory assets were sold was $ 551,428.54 less than their depreciated book value. Petitioner claimed a net operating loss on its return for the fiscal year ended…
1Opinion of the Court
OPINION.
Rice, Judge:
Respondent predicated his disallowance of the claimed net operating loss carry-back here on three grounds: (1) That the sale of petitioner’s noninventory assets was, in fact, made to Silberstein as representative of the controlling stockholder group, and that any loss thereon is barred by section 24 (b) (1) (B) of the 1939 Code;1 (2) that if the sale was, in fact, made to Old Peoria, petitioner’s transfer of its assets was pursuant to a plan of reorganization within the provisions of section 112 (b) (3) and (g) (1) (D)2 and no loss is, therefore, recognized; and (3) that…
2Cases cited12 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Heller v. CommissionerUnited States Tax Court · 1943
- Survaunt v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1947
- Heller v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1945
- Liddon v. CommissionerUnited States Tax Court · 1954
7 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Goldstein Brothers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Pebble Springs Distilling Co. v. CommissionerUnited States Tax Court · 1954