Keister v. Commissioner
United States Board of Tax Appeals
1. A stock dividend paid in nonvoting common stock to the holders of voting common stock and nonvoting common stock is a taxable dividend to the holders of voting common stock. 2. A stock dividend paid in nonvoting 7 percent preferred stock to the holders of voting common stock and to the holders of nonvoting common stock is a taxable dividend to both classes of stockholders. Koshland v. Helvering,298 U.S. 441.
1Opinion of the Court
*487OPINION.
Smith:
The questions for our determination in these proceedings are whether the distributions which the Sprouse-Reitz Co. made in 1936 of its nonvoting common stock to holders of voting common stock, and of its nonvoting 7 percent preferred stock to holders of its voting common stock and its nonvoting common stock were taxable dividends within the meaning of section 115 (f) of the Revenue Act of 1936.
Section 115 of the Revenue Act of 1936 provides in part:
SEO. 115. DISTRIBUTIONS BY CORPORATIONS.(a) Definition of Dividend. — The term “dividend” when used in this title (except in section…
2Cases cited6 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. PhellisSupreme Court of the United States · 1921
- Koshland v. HelveringSupreme Court of the United States · 1936
- Marr v. United StatesSupreme Court of the United States · 1925
- Cullinan v. Walker, Collector of Internal RevenueSupreme Court of the United States · 1923
1 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Gibson v. CommissionerUnited States Board of Tax Appeals · 1941
- Keister v. CommissionerUnited States Board of Tax Appeals · 1940
- Paraport Theatre Leasing Corp. v. CommissionerUnited States Board of Tax Appeals · 1941
- Stern v. CommissionerUnited States Board of Tax Appeals · 1942