Messer v. Commissioner
United States Tax Court
Webb Company, with both common and preferred stock outstanding, redeemed some of its preferred shares for cash and other assets for the purpose of distributing them as a dividend on the remaining preferred stock and did in fact promptly distribute such shares. There was no dispute that its accumulated earnings and profits were sufficient to support that distribution. Petitioner owned both preferred and common.
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Webb Company, with both common and preferred stock outstanding, redeemed some of its preferred shares for cash and other assets for the purpose of distributing them as a dividend on the remaining preferred stock and did in fact promptly distribute such shares. There was no dispute that its accumulated earnings and profits were sufficient to support that distribution. Petitioner owned both preferred and common. The distribution changed his proportionate interest in the corporation as well as that of the other holders of the preferred. Held, the dividend constituted income under section 115 (f)…
1Opinion of the Court
OPINION.
Raum, Judge:
The respondent determined a deficiency in the amount of $16,801.68 in the income tax of the petitioner for the calendar year 1947. The only issue presented is whether certain stock dividends received by the petitioner in 1947 constitute income under section 115 (f) (1) of the Internal Bevenue Code and are thus includible in his gross income.
The facts have been stipulated and are so found. The petitioner, a resident of Galax, Virginia, filed his income tax return for the calendar year 1947 with the collector of internal revenue for the district of Virginia. In 1933, the…
2Cases cited17 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. GowranSupreme Court of the United States · 1937
- United States v. PhellisSupreme Court of the United States · 1921
- Weiss v. StearnSupreme Court of the United States · 1924
- Koshland v. HelveringSupreme Court of the United States · 1936
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3Cited by3 opinions
- Commissioner of Internal Revenue v. Hirshon TrustCourt of Appeals for the Second Circuit · 1954
- Daggitt v. CommissionerUnited States Tax Court · 1954
- Messer v. CommissionerUnited States Tax Court · 1953