Hutchins Lumber & Storage Co. v. Commissioner
United States Board of Tax Appeals
1. Amount of paid-in surplus to which the petitioner is entitled, determined. 2. Two hundred and fifty shares of its stock were donated to the petitioner and thereafter sold for $30,000. Held, that said amount may be included in invested capital. 3. Petitioner purchased $25,000 par value of its own stock for $60,000 cash, $45,000 of which was borrowed.
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1. Amount of paid-in surplus to which the petitioner is entitled, determined. 2. Two hundred and fifty shares of its stock were donated to the petitioner and thereafter sold for $30,000. Held, that said amount may be included in invested capital. 3. Petitioner purchased $25,000 par value of its own stock for $60,000 cash, $45,000 of which was borrowed. Held, that invested capital should be reduced to the extent that the total amount paid exceeds the current earnings available at the date of purchase. 4. Reduction by Commissioner of petitioner's invested capital for income and profits taxes…
1Opinion of the Court
*709OPINION.
MoRRis:
The questions presented for determination in this appeal are: (1) The amount of paid-in surplus to which the petitioner is entitled; (2) whether the sale price of $30,000 for 250 shares of stock donated to the corporation by one of the stockholders and thereafter sold should be included in invested capital; (3) whether invested capital should be reduced for 1919 by $42,227.10 upon the purchase of its own stock with borrowed money; (4) whether there should be a reduction in invested capital for the years 1919 and 1921 of additional taxes for prior years; (5) whether the…
2Cited by8 opinions
- RJ Reynolds Tobacco Co. v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1938
- American Cigar Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- D. N. & E. Walter & Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Houston Bros. Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Hutchins Lumber & Storage Co. v. CommissionerUnited States Board of Tax Appeals · 1926
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