Roebling v. Commissioner

143 F.2d 810 (1944)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

Roebling v. Commissioner

United States Court of Appeals for the Third Circuit
143 F.2d 810 (1944)

Facts

South Jersey Gas, Electric and Traction Co. (South Jersey) leased its plants and equipment to Public Service Electric and Gas Company (Public Service) for 900 years for $480,000 per year. Ferdinand Roebling III (plaintiff) acquired 166 shares of stock in South Jersey at a cost of $16,600. The directors of South Jersey and Public Service entered into a reorganization plan under which South Jersey would be merged into Public Service in accordance with the New Jersey statute on corporate mergers. The stockholders of South Jersey exchanged their stock for Public Service mortgage bonds. Roebling received bonds with a fair market value of $34,777 in exchange for his stock. The Commissioner of Internal Revenue (the commissioner) (defendant) determined that the difference between the fair market value of the bonds and Roebling’s basis in the stock was taxable income. Roebling challenged the assessment in the United States Tax Court. The court found in favor of the commissioner. Roebling appealed, arguing that the transaction was not a taxable event, because the merger was fully authorized by New Jersey law and, alternatively, that a continuity of interest existed to make the event a nontaxable corporate reorganization.

Rule of Law

Issue

Holding and Reasoning (Kalodner, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 814,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 814,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 814,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership