Estate of William A. Webber, Sr., Deceased, William A. Webber, Jr. v. United States

WEICK, Chief Judge.

The taxpayer has appealed from a judgment of the District Court in favor of the Government,- in an action for refund of income taxes alleged to have been illegally assessed and collected from the decedent’s estate.

The question presented is whether the distribution received in the redemption by a closely held corporation of fifty per cent of its common shares owned by the decedent’s estate, should be accorded capital gains treatment, as contended by the estate, 1 or should be treated as a dividend and included in gross income, as claimed by the Government. 2

William A.…