William K. Edmister and Elizabeth Edmister v. Commissioner of Internal Revenue

William K. Edmister and his wife, Elizabeth, petition this Court for review of a decision of the Tax Court whereby it was held that the transfer of certain real estate from Capital Elevator and Manufacturing Company to the petitioners was essentially equivalent to a dividend and the value thereof taxable as ordinary income. The facts are not disputed and are fully stated in the finding of facts and opinion of the Tax Court reported at 46 T.C. 651.

In 1961 and for some time prior thereto the capital stock of Capital Elevator and Manufacturing Company (the corporation) was owned as follows:…