Western Industries Co. v. Commissioner
United States Board of Tax Appeals
The petitioner transferred not more than 85 percent of its properties to a newly formed corporation for cash, most of which was immediately distributed to its stockholders, notes, and preference and common stock. The petitioner continued to exist as a going concern and to hold the stock without any change in its stockholders. Held, that no reorganization occurred within the meaning of section 203 of the Revenue Act of 1926.
1Opinion of the Court
*811OPINION.
Seawell:
The theory of the respondent’s determination is that the transaction between the petitioner and the Chemical Corporation was nothing more than a sale, and therefore not one falling within section 203 of the Revenue Act of 1926, the material portions *812of which are set forth in the margin.1 The petitioner, in contending that a reorganization, not a sale, took place, claims that the question turns upon whether the petitioner transferred substantially all of its properties to the Chemical Corporation, bio issue was raised as to the fair market value of the notes and common stock…
2Cases cited9 opinions
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Wallis Tractor Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Cortland Specialty Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Minnesota Tea Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Arctic Ice Machine Co. v. CommissionerUnited States Board of Tax Appeals · 1931
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3Cited by2 opinions
- Moffatt v. CommissionerUnited States Tax Court · 1964
- Western Industries Co. v. CommissionerUnited States Board of Tax Appeals · 1934