Haffenreffer Brewing Co. v. Commissioner
United States Board of Tax Appeals
1. Preferred stock issued by a corporation at the time of its organization which had no fixed retirement date and on which dividends were to be paid only out of earnings, held, not to constitute an indebtedness of the corporation within the meaning of either section 23(b) or section 351(b)(2)(B) of the Revenue Act of 1934. 2. By virtue of an agreement dated June 23, 1930, petitioner was required to set aside a protion of its earnings in a sinking fund and had the right to…
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1. Preferred stock issued by a corporation at the time of its organization which had no fixed retirement date and on which dividends were to be paid only out of earnings, held, not to constitute an indebtedness of the corporation within the meaning of either section 23(b) or section 351(b)(2)(B) of the Revenue Act of 1934. 2. By virtue of an agreement dated June 23, 1930, petitioner was required to set aside a protion of its earnings in a sinking fund and had the right to apply the sinking fund to the redemption of its preferred shares at par, plus accumulated interest, or to purchase them at…
1Opinion of the Court
*448OPINION.
Black:
Our first question is whether the amount of $86,451.67 is deductible in computing petitioner’s “undistributed adjusted net income” as an amount “used or set aside to retire indebtedness incurred prior to January 1, 1934” under the provisions of section 351, Title IA, of the Revenue Act of 1934. That section reads in part as follows:
SEC. 351. SURTAX ON PERSONAL HOLDING COMPANIES.(a) Imposition op Tax. — There shall be levied, collected, and paid, for each taxable year, upon the undistributed adjusted net income of every personal holding company a surtax equal to the sum of the…
2Cases cited1 opinion
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
3Cited by6 opinions
- Cassman v. United StatesUnited States Court of Federal Claims · 1994
- Bowersock Mills & Power Co. v. CommissionerUnited States Tax Court · 1947
- Haffenreffer Brewing Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- May Hosiery Mills, Inc. v. CommissionerUnited States Board of Tax Appeals · 1940
- Nobis v. CommissionerUnited States Tax Court · 1943
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