Spaulding Bakeries, Inc. v. Commissioner
United States Tax Court
Held, in a case where the preferred stock claim in liquidation took all of the assets of a subsidiary the parent corporation owning all of the preferred and common stock of the subsidiary had a recognizable loss for its worthless common stock and section 112 (b) (6), Internal Revenue Code of 1939, would not govern.
1Opinion of the Court
OPINION.
Mulroney, Judge:
Respondent determined deficiencies in income tax of the petitioner for the calendar years 1949 and 1950 in the amounts of $59,920.06 and $65,888.33, respectively.
All of the facts were stipulated. The only question in the case is whether petitioner was entitled to a claimed worthless stock deduction for the year 1950 in the amount of $320,919.07 with respect to the common capital stock in Hazleton Bakeries, Inc., a wholly owned subsidiary. The year 1949 is involved insofar as petitioner claimed a net operating loss carryback of $152,582.80 resulted from the alleged loss…
2Cases cited2 opinions
- Iron Fireman Mfg. Co. v. Comm'rUnited States Tax Court · 1945
- Northern Coal & Dock Co. v. CommissionerUnited States Tax Court · 1949
3Cited by17 opinions
- Swiss Colony, Inc. v. CommissionerUnited States Tax Court · 1969
- Waterman Steamship Corporation v. United StatesDistrict Court, S.D. Alabama · 1962
- Braddock Land Co. v. CommissionerUnited States Tax Court · 1980
- Crown v. CommissionerUnited States Tax Court · 1972
- Byerlyte Corporation v. WilliamsDistrict Court, N.D. Ohio · 1959
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