Colorado Life Co. v. Commissioner
United States Board of Tax Appeals
Where an insurance company issues its stock for sufficient cash consideration to enable it to deposit paid-in capital as a condition precedent to receiving a license to transact business, and afterwards redeems such stock at a price in excess of the amount for which it was issued, such excess must be regarded as a dividend incident to the redemption of the stock.
1Opinion of the Court
OPINION.
Lansdon:
The respondent has determined a deficiency in income tax for the year 1930 in the amount of $1,439.76. The only issue is whether a certain payment made by the petitioner in the taxable year was interest and therefore deductible from income in such year in conformity with section 203 (a) (8) of the Revenue Act of 1928.1
*951The petitioner is an insurance company, with its principal office at Denver, Colorado. It was organized in 1919 with authorized capital of $200,000, of which $100,000 was paid in and the balance subscribed for. In 1921 it reinsured its business, distributed its…
2Cases cited1 opinion
- Angelus Bldg. & Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by2 opinions
- Colorado Life Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- J. Weingarten, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941