Morgan v. Commissioner

Decided February 14, 1940

United States Board of Tax Appeals · decided 1940-02-14

The owner of one-fourth of the stock of a corporation desired to acquire his proportionate share of its assets and continue its business, either as an… Held: There was but one transaction, the substance of which was an exchange by the taxpayer of his stock in the old corporation for stock in the new corporation. (2) The exchange was not made pursuant to a plan of reorganization within the purview and intendment of the statute and the gain realized by the taxpayer is taxable.

Cited by 2 later decisions — most recently January 1957

Relies on Le Tulle v. Scofield · Case v. Commissioner

Good law ✅— No negative treatment on recordhow we know

Decided 1940-02-14

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Leech,

¶1concurring: I agree that the several steps, in carrying out the obvious plan, constituted only one transaction for tax purposes. Neither Albert O. Field, Inc., nor its stockholders, retained the necessary continuing interest in Morgan (1933), in which the assets originally owned by Field, Inc., rested at the consummation of that transaction. For that reason,* therefore, I concur in the holding that there was no- statutory reorganization. LeTulle v. Scofield, 308 U. S. 415; Paul L. Case, 37 B. T. A. 365 (affirmed upon the reorganization issue in Paul L. Case v. Commissioner, 103 Fed. (2d) 283).