Helvering v. WattsAnnotate this Case
296 U.S. 387 (1935)
U.S. Supreme Court
Helvering v. Watts, 296 U.S. 387 (1935)
Helvering v. Watts
Argued November 20, 1935
Decided December 16, 1935
296 U.S. 387
1. Where stockholders owning all of the shares of corporation A exchanged them for stock in corporation B and mortgage bonds of corporation A guaranteed by Corporation B, there was a "reorganization" under § 203(h)(1)(A) of the Revenue Act of 1924, and, by the effect of § 203(b)(2), no taxable gain resulted notwithstanding the A corporation continued in business. Helvering v. Minnesota Tea Co., ante, p. 296 U. S. 378. P. 296 U. S. 388.
2. The transaction is within the description of reorganization set forth by Article 1574 of Treasury Regulations 65, applicable to the Revenue Act of 1924, and that this regulation is a proper interpretation of the Act is confirmed by the reenactment, without change, by Congress of the paragraph to which it refers. P. 296 U. S. 389.
3. The bonds were "securities" within the meaning of § 203(b)(2) of the Act. P. 296 U. S. 389.
75 F.2d 981 affirmed.
Certiorari to review a Judgment reversing a decision of the Board of Tax Appeals, 28 B.T.A. 1056, which sustained a deficiency assessment of income taxes.
Official Supreme Court caselaw is only found in the print version of the United States Reports. Justia caselaw is provided for general informational purposes only, and may not reflect current legal developments, verdicts or settlements. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or information linked to from this site. Please check official sources.