Schmitt v. Commissioner
United States Tax Court
In the taxable year 1947 petitioners, stockholders of Wolverine Supply & Manufacturing Company, received a proportionate distribution of 1,486 shares of its capital stock acquired by purchase out of undivided profits. Held, that such distribution constituted a taxable dividend to the extent of the fair market value of the shares received by each petitioner.
1Opinion of the Court
OPINION.
LeMire, Judge:
The respondent determined that the petitioners, in the taxable year 1947, received a taxable distribution equal to the fair market value of 1,486 shares of the capital stock of Wolverine.
Petitioners contend that the distribution of such shares was a nontaxable stock dividend within the ambit of Eisner v. Macomber, 252 U. S. 189, and our decisions in the cases of James Kay, 28 B. T. A. 331, and David Bruckheimer, 46 B. T. A. 234.
The authorized capital of Wolverine was 2,500 shares of common stock of the par value of $50 per share, and 2,063 shares had been issued. Prior…
2Cases cited4 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Eisner, Internal Revenue Collector v. MacOmberSupreme Court of the United States · 1919
- United States v. SiegelCourt of Appeals for the Eighth Circuit · 1931
- Bass v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1942
3Cited by7 opinions
- Priester v. CommissionerUnited States Tax Court · 1962
- Schmitt v. Commissioner of Internal Revenue. Lehren v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
- Jacobs v. CommissionerUnited States Tax Court · 1981
- Priester v. CommissionerUnited States Tax Court · 1962
- Schmitt v. CommissionerUnited States Tax Court · 1953
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