Sullivan v. Commissioner
United States Tax Court
1. Redemption of Stock -- Distributions in Liquidation -- Payment for Stock or Dividend. -- A distribution in kind in cancelation of stock was not essentially equivalent to the distribution of a taxable dividend within the meaning of section 115 (g) but was taxable as provided in section 115 (c). 2. Section 117 (j) (2) -- Interpretation -- Capital Asset Sales. -- Not all long term gains from sales of capital assets are to be added in the formula of section 117 (j) (2) but…
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1. Redemption of Stock -- Distributions in Liquidation -- Payment for Stock or Dividend. -- A distribution in kind in cancelation of stock was not essentially equivalent to the distribution of a taxable dividend within the meaning of section 115 (g) but was taxable as provided in section 115 (c). 2. Section 117 (j) (2) -- Interpretation -- Capital Asset Sales. -- Not all long term gains from sales of capital assets are to be added in the formula of section 117 (j) (2) but only the recognized gains from the compulsory or involuntary conversion of capital assets held for more than 6 months into…
1Opinion of the Court
OPINION.
Mukdock, Judge:
The Commissioner maintains that the distribution made by Texon on April 1, 1943, was “at such time and in such manner as to make the distribution and cancellation * * * in part essentially equivalent to the distribution of a taxable dividend” within the meaning of section 115 (g), so that the distribution is taxable as a dividend to the extent that accumulated earnings of Texon were available. The petitioners contend that the distribution does not come within that section and the entire amount must be treated as in payment for the stock under section 115 (c). The Court,…
2Cases cited3 opinions
- Boyle v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
- McGuire v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1936
- Pullman, Inc. v. CommissionerUnited States Tax Court · 1947
3Cited by24 opinions
- Towers v. CommissionerUnited States Tax Court · 1955
- Holsey v. CommissionerUnited States Tax Court · 1957
- Kessner v. CommissionerUnited States Tax Court · 1956
- Becher v. CommissionerUnited States Tax Court · 1954
- McDaniel v. CommissionerUnited States Tax Court · 1955
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