Crown Cork International Corp. v. Commissioner
United States Tax Court
Transfer of securities by petitioner corporation to its wholly owned subsidiary, held, to result in no deductible loss in the absence of evidence negativing domination and control of the subsidiary by petitioner, and of any purpose for the transaction on the part of petitioner other than tax avoidance.
1Opinion of the Court
OPINION.
OppeR, Judge'.
The question whether a corporation may be permitted to deduct a loss sustained on a sale to its wholly owned subsidiary is dealt with to a limited degree by section 24 (b). (1), Internal Kevenue Code.1
Since, however, the provisions of that section are confined to personal holding company transactions and since it is stipulated here that neither of the corporations was a personal holding company, it becomes apparent that the statutory provisions do not operate by their own force to disallow the loss. The question, then, narrows to whether these provisions were intended to…
2Cases cited5 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Southern Pacific Co. v. LoweSupreme Court of the United States · 1918
3Cited by38 opinions
- Drobny v. CommissionerUnited States Tax Court · 1986
- Derr v. CommissionerUnited States Tax Court · 1981
- Investers Diversified Services, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Estate of Byrne v. CommissionerUnited States Tax Court · 1951
- Investors Diversified Services, Inc. v. CommissionerUnited States Tax Court · 1962
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