Fischer v. Commissioner
United States Board of Tax Appeals
Petitioners were stockholders in a corporation which readjusted its capital structure during the taxable year 1936. Prior to the readjustment the corporation's authorized, issued and outstanding capital stock consisted of 7,000 shares of common of the par value of $100 per share or $700,000. During 1936 a "plan of recapitalization" was duly executed under which the corporation's charter was amended so that, instead of its outstanding stock, its authorized stock would consist…
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Petitioners were stockholders in a corporation which readjusted its capital structure during the taxable year 1936. Prior to the readjustment the corporation's authorized, issued and outstanding capital stock consisted of 7,000 shares of common of the par value of $100 per share or $700,000. During 1936 a "plan of recapitalization" was duly executed under which the corporation's charter was amended so that, instead of its outstanding stock, its authorized stock would consist of 35,000 shares of new common of the par value of $10 per share or $350,000 and 14,000 shares of new preferred of the…
1Opinion of the Court
*1007OPINION.
Black:
The question in all of these proceedings is the same, namely, whether the preferred stock received by the petitioners dur*1008ing the taxable year 1936 is taxable to them as a dividend, or whether the receipt by petitioners of the preferred and new common in exchange for the old common was a transaction upon which no gain or loss shall be recognized. If the Board determines that petitioners received the preferred stock and new common stock in a nontaxable reorganization, then the Commissioner concedes that the gains of petitioners on the sale of the stock are taxable as capital gain…
2Cases cited5 opinions
- Helvering v. GowranSupreme Court of the United States · 1937
- Koshland v. HelveringSupreme Court of the United States · 1936
- Helvering v. PfeifferSupreme Court of the United States · 1937
- Baltimore & O. R. v. Western Union Telegraph Co.District Court, S.D. New York · 1917
- Baltimore & O. R. v. Western Union Telegraph Co.Court of Appeals for the Second Circuit · 1917
3Cited by1 opinion
- Fischer v. CommissionerUnited States Board of Tax Appeals · 1942