Stewart v. Commissioner
United States Board of Tax Appeals
1. The amount paid by a corporation for all the stock held by the owners of 50 percent of its outstanding shares which are then held in its treasury is a statutory distribution made from the most recently accumulated earnings.
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1. The amount paid by a corporation for all the stock held by the owners of 50 percent of its outstanding shares which are then held in its treasury is a statutory distribution made from the most recently accumulated earnings. Sec. 201(b), (c), Act of 1926. 2. A statutory distribution in an amount greater than earnings and profits accumulated after February 28, 1913, leaves nothing for future distribution except (a) prior accumulated earnings and profits, (b) the increment reflected by the appreciation in value of assets, and (c) the original capital. 3. Where a corporation reissued as a…
1Opinion of the Court
*810OPINION.
Steunhagen:
The Commissioner determined income tax deficiencies for 1928 of $5,064.54 as to Stewart and $5,221.29 as to Whipple, and the issue turns upon the proper treatment under the Revenue Act of 1928 of the receipt by them, in reduction of the par value of their shares of the Windsor Tobacco Growers Corporation, of fixed assets and cash worth in the aggregate $183,706.14. The facts are stipulated as follows:
1. Tlie petitioner, John B. Stewart, resides at Windsor, Connecticut, and the petitioner, Frank H. Whipple, resides at Hartford, Connecticut.
2. The Windsor Tobacco Growers…
2Cases cited1 opinion
- Eisner v. MacOmberSupreme Court of the United States · 1920
3Cited by9 opinions
- Anderson v. CommissionerUnited States Tax Court · 1976
- Carey v. CommissionerUnited States Board of Tax Appeals · 1934
- Foster v. United StatesUnited States Court of Claims · 1937
- Anderson v. CommissionerUnited States Tax Court · 1976
- Carey v. CommissionerUnited States Board of Tax Appeals · 1934
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