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taxing statutes generally." Weller v. Commissioner, 270 F.2d
294, 297 (3d Cir. 1959), affg. Emmons v. Commissioner, 31 T.C. 26
(1958) and Weller v. Commissioner, 31 T.C. 33 (1958); see also
Knetsch v. United States, 364 U.S. 361 (1960)(interest
deduction); Higgins v. Smith, 308 U.S. 473 (1940) (loss deduction
on sale to wholly owned corporation); Weyl-Zuckerman & Co. v.
Commissioner, 232 F.2d 214 (9th Cir. 1956), affg. 23 T.C. 841
(1955)(mineral rights transferred to a wholly owned subsidiary);
Braddock Land Co. v. Commissioner, 75 T.C. 324 (1980)
(shareholders-employees' forgiveness of accrued salaries,
bonuses, and interest owed by corporation in complete
liquidation); David's Specialty Shops v. Johnson, 131 F. Supp.
458 (S.D.N.Y. 1955)(affiliated corporations). The tax statutes
apply only "to transactions entered upon for commercial purposes
and 'not to * * * transactions entered upon for no other motive
but to escape taxation.'" Weller v. Commissioner, 270 F.2d supra
at 297 (quoting Commissioner v. Transport Trading & Terminal
Corp., 176 F.2d 570, 572 (2d Cir. 1949), revg. 9 T.C. 247
(1947)). Thus, transactions will only be recognized for tax
purposes if there is some "tax-independent purpose" for the
entire transaction. See Sheldon v. Commissioner, supra at 759.
Only after we conclude that a transaction has economic substance
will we consider the transaction's tax consequences under the
Code. See Rice's Toyota World, Inc. v. Commissioner, 752 F.2d
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