United States v. Georgia Railroad and Banking Company

GEWIN, Circuit Judge.

This appeal presents for our consideration two novel questions of federal income tax law. First, we must decide whether a lessor under a 99-year “lease” of corporate securities is entitled to the dividends-received deduction which § 243 of the Internal Revenue Code of 1954, 26 U.S.C.A. § 243, affords to corporate shareholders. 1 Second, we must answer the question whether the taxpayer-lessor, having distributed the reversion in certain of the leased shares to its own stockholders as a dividend in kind, may amortize over the remainder of the lease term its retained…