Tillotson Mfg. Co. v. Commissioner
United States Board of Tax Appeals
A dividend declared upon cumulative nonvoting preferred shares payable in common voting shares is, as to the preferred shareholder, not a tax-free stock dividend; and when the preferred shares are later sold, the basis for determining gain is the entire original cost of the preferred shares.
1Opinion of the Court
OPINION.
SteRnhagen :
The respondent determined a deficiency of $16,187 20 in petitioner’s income tax for 1926, by treating as a stock dividend the distribution in 1926 to petitioner, a preferred shareholder in the Willys-Overland Company, of some of that corporation’s common shares, with consequent reduction of cost as the basis of gain on subsequent sale in 1926 of the original shares. A stipulation and *914accompanying exhibits contain the facts npon which the case was submitted.
The petitioner, an Ohio corporation, acquired from time to time between November 1, 1922, and December 31, 1924, 6,500…
2Cases cited9 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Towne v. EisnerSupreme Court of the United States · 1918
- United States v. PhellisSupreme Court of the United States · 1921
- Miles v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1922
- Marr v. United StatesSupreme Court of the United States · 1925
4 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Ward v. CommissionerUnited States Board of Tax Appeals · 1934
- Clark v. CommissionerUnited States Board of Tax Appeals · 1933
- Paper v. CommissionerUnited States Board of Tax Appeals · 1933
- Wood v. CommissionerUnited States Board of Tax Appeals · 1934
- E. C. Atkins & Co. v. CommissionerUnited States Board of Tax Appeals · 1941
6 more not listed; retrieve them via the Exa API.