Kelly v. Commissioner
United States Board of Tax Appeals
Where preferred stock was received as a dividend on common stock, which was the only class of stock theretofore authorized and outstanding, held, that the basis of the dividend stock on subsequent disposition is zero rather than some allocated portion of the basis of the common stock on which it was declared.
1Opinion of the Court
*1016OPINION.
Opper:
The parties are in virtual agreement that the test of whether the stock dividend redeemed in the tax years was1 or was not2 income under the Sixteenth Amendment is whether the stockholders received an interest substantially different in character or extent from that previously held.3 Decision of this question is necessary for the resolution of the issue before us, since, if the stock dividend is income and its redemption in the instant years was in no degree a return of capital, respondent contends that its basis 4 is zero and the entire amount received thus becomes the measure…
2Cases cited6 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. GowranSupreme Court of the United States · 1937
- Koshland v. HelveringSupreme Court of the United States · 1936
- Lynch v. HornbySupreme Court of the United States · 1918
- Peabody v. EisnerSupreme Court of the United States · 1918
1 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Strassburger v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
- Fischer v. CommissionerUnited States Board of Tax Appeals · 1942
- Keister v. CommissionerUnited States Board of Tax Appeals · 1940
- Kelly v. CommissionerUnited States Board of Tax Appeals · 1938
- Paraport Theatre Leasing Corp. v. CommissionerUnited States Board of Tax Appeals · 1941
5 more not listed; retrieve them via the Exa API.