[DOWNLOAD] "Commissioner of Internal Revenue v. Kitselman" by Seventh Circuit Circuit Court of Appeals " Book PDF Kindle ePub Free
eBook details
- Title: Commissioner of Internal Revenue v. Kitselman
- Author : Seventh Circuit Circuit Court of Appeals
- Release Date : January 12, 1937
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 64 KB
Description
This appeal raises the question of the deductibility of a loss claimed to have been allegedly sustained by a bondholding taxpayer in the alleged reorganization of a company with outstanding bonds. The taxpayer exchanged defaulted railroad mortgage bonds for a credit and stocks and bonds in a new company formed to receive the assets of the debtor company, which were purchased at a sale on the foreclosure of the mortgage which secured the taxpayers bonds. In brief, liability depends upon whether there was effected such a statutory reorganization as is covered by section 112 of the Revenue Act of 1928 (26 U.S.C.A. § 112 and note). If the transaction whereby the bondholder surrendered his bonds and secured a cash credit and stocks and bonds was a result of a statutory reorganization, there was no loss which the taxpayer may deduct until the new securities are sold. The taxpayer did not dispose of his new securities in 1930. As an alternative position, the Government argues that, even though there were no reorganization, the loss should be calculated by deducting the value of the new stocks and bonds, as well as any other credit which the taxpayer received, from the cost of the old bonds.