Civic Center Finance Co. v. Kuhl

Seventh Circuit

Civic Center Finance Co. v. Kuhl

177 F.2d 706, 38 A.F.T.R. (P-H) 835, 1949 U.S. App. LEXIS 4308

CourtCourt of Appeals for the Seventh Circuit

DecidedOctober 28, 1949

DocketNo. 9850

StatusPublished

This text of 177 F.2d 706 (Civic Center Finance Co. v. Kuhl) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Civic Center Finance Co. v. Kuhl, 177 F.2d 706, 38 A.F.T.R. (P-H) 835, 1949 U.S. App. LEXIS 4308 (7th Cir. 1949).

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Opinion

PER CURIAM.

The taxpayer appeals from a judgment dismissing its suit to recover income and excess profits taxes for the year 1942. The controversy is over the proper basis to be used in determining the cost of a building which, according to the taxpayer’s contention, it acquired in 1936 pursuant to a plan of reorganization within the terms of Sec. 112(g) (1) (B) and (C) of the Revenue Act of 1936, as amended by the Act of 1939, 26 U.S.C.A. § 112. Accordingly, it contends, upon sale of the building in 1942, it was entitled to base' its cost for purposes of determining gain or loss upon the unadjusted basis in the hands of the transferor company. The District Court held, on the contrary, that the cost must be based upon the amount of liabilities actually assumed by the taxpayer as transferee of the property, and that upon that basis the taxpayer incurred a taxable gain upon the sale of the building in 1942, instead of the loss claimed by it.

[707]*707The facts involved in the case and the reasons upon which the decision was based are well stated by Judge Duffy in his opinion, 83 F.Supp. 251. We are fully in accord with the views there expressed.

Judgment affirmed.

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PER CURIAM.

The taxpayer appeals from a judgment dismissing its suit to recover income and excess profits taxes for the year 1942. The controversy is over the proper basis to be used in determining the cost of a building which, according to the taxpayer’s contention, it acquired in 1936 pursuant to a plan of reorganization within the terms of Sec. 112(g) (1) (B) and (C) of the Revenue Act of 1936, as amended by the Act of 1939, 26 U.S.C.A. § 112. Accordingly, it contends, upon sale of the building in 1942, it was entitled to base' its cost for purposes of determining gain or loss upon the unadjusted basis in the hands of the transferor company. The District Court held, on the contrary, that the cost must be based upon the amount of liabilities actually assumed by the taxpayer as transferee of the property, and that upon that basis the taxpayer incurred a taxable gain upon the sale of the building in 1942, instead of the loss claimed by it.

[707]*707The facts involved in the case and the reasons upon which the decision was based are well stated by Judge Duffy in his opinion, 83 F.Supp. 251. We are fully in accord with the views there expressed.

Judgment affirmed.

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177 F.2d 706, 38 A.F.T.R. (P-H) 835, 1949 U.S. App. LEXIS 4308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/civic-center-finance-co-v-kuhl-ca7-1949.

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