Allyne-Zerk Co. v. Commissioner
United States Board of Tax Appeals
Petitioner sold all its assets for cash and a portion of its own stock then outstanding. Held, that it realized taxable gain on the sale to the extent of the difference between cost of the assets and the amount of cash received plus the value of its own stock surrendered.
1Opinion of the Court
OPINION.
Abundell :
This proceeding was brought to redetermine a deficiency in income tax of the petitioner for the year 1924 in the sum of $27,362.89.
*1195A bad debt issue was settled by stipulation. The remaining issue is whether or not the sale by a corporation of its property and assets for cash, and the surrender for cancellation of a portion of its own outstanding shares of capital stock resulted in taxable income to petitioner.
The facts were stipulated and so far as material they are as follows:
The petitioner is a corporation, organized under the laws of the State of Ohio, with its principal…
2Cases cited1 opinion
- Houghton & D. Co. v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by4 opinions
- Niagara Share Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Allyne-Zerk Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Liquid Carbonic Corp. v. CommissionerUnited States Board of Tax Appeals · 1936
- R. J. Reynolds Tobacco Co. v. CommissionerUnited States Board of Tax Appeals · 1937