Northern Coal & Dock Co. v. Comm'r of Internal Revenue

6 Citing cases

  1. Waterman Steamship Corporation v. United States

    203 F. Supp. 915 (S.D. Ala. 1962)   Cited 11 times

    The evidence conclusively establishes that fact. The Tax Court has had opportunity to speak on this point on at least three occasions: Iron Fireman Manufacturing Co., 5 T.C. 452; Spaulding Bakeries, Inc., v. Commissioner, 27 T.C. 684; affirmed on appeal, 2nd Cir., 1958, 252 F.2d 693; Northern Coal Dock Co., 12 T.C. 42. See also, H.G. Hill Stores, Inc., 44 B.T.A. 1182.

  2. Braddock Land Co., Inc. v. Commr. of Internal Revenue

    75 T.C. 324 (U.S.T.C. 1980)

    We have held in the context of the liquidation of a subsidiary corporation that the liquidation provisions only encompass distributions of assets to stockholders in cancellation and redemption of their stock (i.e., a return to them in whole or in part of their capital investment in the corporation), H.G. Hill Stores, Inc. v. Commissioner, 44 B.T.A. 1182 (1941); and do not include distributions made to a creditor for the discharge of outstanding obligations. Northern Coal Dock Co. v. Commissioner, 12 T.C. 42 (1949). This rule has also been held to apply in a section 331 liquidation (Jorden v. Commissioner, 11 T.C. 914 (1948); Bratton v. Commissioner, 31 T.C. 891 (1959), affd. per curiam 283 F.2d 257 (6th Cir. 1960), cert. denied 366 U.S. 911 (1961)), despite the differences in language between sections 331 and 332.

  3. Braddock Land Co.  v. Comm'r of Internal Revenue

    75 T.C. 324 (U.S.T.C. 1980)

    that the liquidation provisions only encompass distributions of assets to stockholders in cancellation and redemption of their stock (i.e., a return to them in whole or in part of their capital investment in the corporation), H. G. Hill Stores, Inc. v. Commissioner, 44 B.T.A. 1182 (1941); and do not include distributions made to a creditor for the discharge of outstanding obligations. Northern Coal & Dock Co. v. Commissioner, 12 T.C. 42 (1949). This rule has also been held to apply in a section 331 liquidation ( Jorden v. Commissioner, 11 T.C. 914 (1948); Bratton v. Commissioner, 31 T.C. 891 (1959), affd. per curiam 283 F.2d 257 (6th Cir. 1960), cert. denied 366 U.S. 911 (1961)), despite the differences in language between sections 331 and 332.

  4. Swiss Colony, Inc. v. Comm'r of Internal Revenue

    52 T.C. 25 (U.S.T.C. 1969)   Cited 4 times

    of its assets is determinative. Northern Coal & Dock Co., 12 T.C. 42 (1949); cf. Rev. Rul. 59-296, 1959-2 C.B. 87; Rev. Rul. 68-602, 1968-2 C.B. 135. Thus, if the fair market value of a corporation's assets exceeds the amount of its liabilities, the corporation is solvent, and the recipient corporation, which received all of the assets of the liquidating corporation, within the meaning of section 1.332-2(b), Income Tax Regs.

  5. C.M. Gooch Lumber Sales Co. v. Comm'r of Internal Revenue

    49 T.C. 649 (U.S.T.C. 1968)   Cited 19 times

    This amount should be applied against petitioner's position as a creditor, i.e., the June 30, 1960, balance. United Engineers & Constructors, Inc. v. Smith, supra; cf. Waterman Steamship Corporation v. United States, 203 F.Supp. 915, 921 (S.D. Ala. 1962), reversed on other issues 330 F.2d 128 (C.A. 5, 1964), affd. 381 U.S. 252 (1965); Northern Coal & Dock Co., 12 T.C. 42 (1949). Thus, petitioner is entitled to a bad debt deduction of $57,390.51.

  6. Spaulding Bakeries Inc. v. Comm'r of Internal Revenue

    27 T.C. 684 (U.S.T.C. 1957)   Cited 10 times
    Finding the taxpayer's common stock worthless because the corporation could not satisfy the claim of the taxpayer's preferred stock when the corporation dissolved and nothing was distributed on account of the common stock

    In those cases we held, in what would otherwise be a section 112(b)(6) liquidation but for the fact that the distribution to the parent is insufficient to satisfy more than a part of the debt, the parent has both a deductible bad debt and a deductible stock loss. Iron Fireman Manufacturing Co., 5 T.C. 452; H. G. Hill Stores, Inc., 44 B.T.A. 1182; Glenmore Distilleries Co., 47 B.T.A. 213; and Northern Coal & Dock Co., 12 T.C. 42. We need not go into the distinctions that exist in corporation law between corporate indebtedness and preferred stock.