Sandoval Zinc Co. v. Commissioner
United States Tax Court
Petitioner purchased 900 of its 1,500 outstanding shares of capital stock in 1948 and simultaneously entered into contracts with two of its employees to resell such shares to them equally over a period of years at the same price for which it purchased the stock. It did not retire the purchased stock but held it in its treasury as treasury stock until resold.
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Petitioner purchased 900 of its 1,500 outstanding shares of capital stock in 1948 and simultaneously entered into contracts with two of its employees to resell such shares to them equally over a period of years at the same price for which it purchased the stock. It did not retire the purchased stock but held it in its treasury as treasury stock until resold. Held, in determining petitioner's excess profits credit based on income under section 435, I. R. C. 1939, the proceeds from the resale of the stock in 1951 and 1952 do not constitute "money * * * paid in for stock" as that phrase is used…
1Opinion of the Court
Sandoval Zinc Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Sandoval Zinc Co. v. Commissioner
Docket No. 59819
United States Tax Court
29 T.C. 1055; 1958 U.S. Tax Ct. LEXIS 242;
February 28, 1958, Filed
Decision will be entered for the respondent.
Petitioner purchased 900 of its 1,500 outstanding shares of capital stock in 1948 and simultaneously entered into contracts with two of its employees to resell such shares to them equally over a period of years at the same price for which it purchased the stock. It did not retire the purchased stock but held it in its treasury as…
Also in this document: Dissent.
2Cases cited8 opinions
- Helvering v. WinmillSupreme Court of the United States · 1938
- Borg v. International Silver Co.Court of Appeals for the Second Circuit · 1925
- Kirschenbaum v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1946
- Amelia H. Cohen Trust v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1941
- Chetlain v. Republic Life InsuranceIllinois Supreme Court · 1877
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