Legal Opinion

Columbia Theatre Co. v. Commissioner

United States Board of Tax Appeals

Decided February 9, 1926No. Docket No. 1414PublishedCited by 15 opinions

1. Stockholders surrendered and authorized the cancellation of certain notes evidencing money advanced by them to a corporation. Held, that, in the circumstances of this appeal, the amount of the notes so surrendered and canceled became paid-in surplus from the date of such surrender and cancellation. 2. In response to proper corporate action stockholders paid in to a corporation certain assessments.

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1. Stockholders surrendered and authorized the cancellation of certain notes evidencing money advanced by them to a corporation. Held, that, in the circumstances of this appeal, the amount of the notes so surrendered and canceled became paid-in surplus from the date of such surrender and cancellation. 2. In response to proper corporate action stockholders paid in to a corporation certain assessments. Held, that such payments were additions to paid-in surplus. 3. During the period required for the construction of buildings on leased land, such construction being a condition of the lease, a…

1Opinion of the Court

*626OPINION.

Lansdon:

This appeal involves the correct determination of the statutory invested capital of a group of affiliated companies, which made a consolidated income and profits-tax return for the year 1919 through the taxpayer, which is the parent corporation. The questions involved must be resolved by ascertaining the correct invested capital of the Mid-City Realty Co. and the Middleton Theatre Co.

The Mid-City Realty Co. had capital paid in for shares in the amount of $100,000, concerning which there is no controversy. The taxpayer contends that the amounts of $75,000 loaned to the company…

2Cases cited2 opinions

  1. United States v. Oregon-Washington R. & Nav. Co.Court of Appeals for the Second Circuit · 1918
  2. Lincoln Chemical Co. v. EdwardsCourt of Appeals for the Second Circuit · 1923

3Cited by15 opinions

  1. Shainberg v. CommissionerUnited States Tax Court · 1959
  2. Southern Natural Gas Company v. The United StatesUnited States Court of Claims · 1969
  3. Southern Ry. v. CommissionerUnited States Board of Tax Appeals · 1933
  4. Jones v. CommissionerUnited States Tax Court · 1963
  5. Central Real Estate Co. v. CommissionerUnited States Board of Tax Appeals · 1929

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