Elmhirst v. Commissioner
United States Board of Tax Appeals
1. A corporation exchanged its capital stock for securities. Held, that for purposes of computing earnings or profits to ascertain amounts available for distribution as dividends, the cost to the corporation, i.e., fair market value of the securities at date of exchange, should be taken as base, and not cost to the transferor of the securities to the corporation.
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1. A corporation exchanged its capital stock for securities. Held, that for purposes of computing earnings or profits to ascertain amounts available for distribution as dividends, the cost to the corporation, i.e., fair market value of the securities at date of exchange, should be taken as base, and not cost to the transferor of the securities to the corporation. W. S. Farish & Co.,38 B.T.A. 150; affd., 104 Fed.(2d) 833; F. J. Young Corporation,35 B.T.A. 860; affd., 103 Fed.(2d) 137. 2. Corporate books were kept on an accrual basis, and closed only yearly, at the end of each year. A closing…
1Opinion of the Court
OPINION.
Disney :
These proceedings, duly consolidated, involve income taxes for the years 1932,1933, and 1934, in the amounts of $69,979.46, $407,-156.83, and $442,281.20, respectively. A large portion of the facts was stipulated. The facts so stipulated are adopted by reference as our findings of fact, and, in addition thereto, we will set forth hereinafter certain other findings of fact.
The petitioner, a resident of Devonshire, England, kept her accounts and prepared her income tax returns, during all the years material to this proceeding, upon a calendar year basis and upon the basis of…
2Cases cited5 opinions
- Helvering v. TaylorSupreme Court of the United States · 1935
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Edwards v. DouglasSupreme Court of the United States · 1925
- Mason v. RoutzahnSupreme Court of the United States · 1927
- Douglas v. EdwardsCourt of Appeals for the Second Circuit · 1924
3Cited by8 opinions
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- Wheeler v. CommissionerCourt of Appeals for the Ninth Circuit · 1944
- Luke v. CommissionerUnited States Tax Court · 1964
- Borroughs v. McColganCalifornia Supreme Court · 1943
- Elmhirst v. CommissionerUnited States Board of Tax Appeals · 1940
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