Wells v. Commissioner
United States Board of Tax Appeals
Petitioner owned stock of corporation A. with other stockholders of that company he organized a new corporation, each subscribing to its stock in amounts equal to their holdings of A stock, and paying for the same in cash. At the same time the new corporation purchased from petitioner and the other stockholders their A company stock, paying for the same in cash.
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Petitioner owned stock of corporation A. with other stockholders of that company he organized a new corporation, each subscribing to its stock in amounts equal to their holdings of A stock, and paying for the same in cash. At the same time the new corporation purchased from petitioner and the other stockholders their A company stock, paying for the same in cash. Held, petitioner did not exchange old stock for new within the meaning of section 112(b)(5) of the Revenue Act of 1928, but made sale of one stock and purchase of another. Held, further, that petitioner sustained a deductible loss…
1Opinion of the Court
*224OPINION.
Goodeich::
The fundamental controversy here is whether petitioner sold his stock in the Marine Midland Corporation or ex*225changed it for stock in the Midland Equities, Inc. If he made a sale of it, as he contends he did, he may deduct from his income the loss claimed, no dispute being raised as to its amount. If he made an exchange of stocks, as respondent has determined he did, the loss claimed may not be recognized, for the transaction falls within the provisions of section 112 (b) (5) of the Revenue Act of 1928,1 as a transfer of property to a corporation solely in exchange for its…
2Cases cited14 opinions
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Burnet v. ClarkSupreme Court of the United States · 1932
- Williamson v. BerrySupreme Court of the United States · 1850
- Regal Shoe Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Gregory v. CommissionerUnited States Board of Tax Appeals · 1932
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3Cited by1 opinion
- Wells v. CommissionerUnited States Board of Tax Appeals · 1933