Legal Opinion

Priester v. Commissioner

United States Tax Court

Decided May 29, 1962No. Docket No. 88419Published

A corporation which had only two stockholders, and in which the petitioner held the minority stock interest, purchased or redeemed all the shares of its majority stockholder at a price of $ 113,000, then canceled such shares -- whereupon the petitioner became the sole remaining stockholder.

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A corporation which had only two stockholders, and in which the petitioner held the minority stock interest, purchased or redeemed all the shares of its majority stockholder at a price of $ 113,000, then canceled such shares -- whereupon the petitioner became the sole remaining stockholder. Held, that the corporation's payment of said sum of $ 113,000 to its majority stockholder in complete redemption of all his shares, did not cause petitioner to become chargeable with a constructive distribution of a taxable dividend to him of the same amount. Held, further, that the corporation's payment…

1Opinion of the Court

Milton F. Priester and Robbie Priester, Petitioners, v. Commissioner of Internal Revenue, Respondent

Priester v. Commissioner

Docket No. 88419

United States Tax Court

38 T.C. 316; 1962 U.S. Tax Ct. LEXIS 128;

May 29, 1962, Filed

Decision will be entered under Rule 50.

A corporation which had only two stockholders, and in which the petitioner held the minority stock interest, purchased or redeemed all the shares of its majority stockholder at a price of $ 113,000, then canceled such shares -- whereupon the petitioner became the sole remaining stockholder. Held, that the corporation's payment of said…

Also in this document: Dissent.

2Cases cited15 opinions

  1. Eisner v. MacOmberSupreme Court of the United States · 1920
  2. Eisner, Internal Revenue Collector v. MacOmberSupreme Court of the United States · 1919
  3. Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
  4. Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
  5. Joseph R. Holsey and Eleanor T. Holsey v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958

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