Dr. Pepper Bottling Co. v. Commissioner
United States Tax Court
Purchase by petitioner corporation of shares of its own stock pursuant to an agreement to effect permanent equal division of stock control, and resale thereof two years later at an increase over the amount paid occasioned by petitioner's need of readjusting its capital, held, to be a capital transaction not resulting in taxable gain to it.
1Opinion of the Court
OPINION.
Oppee, Judge:
It is by now established that under the 1936 and subsequent revenue acts treatment of a corporation's dealings in its own stock is validly prescribed by respondent’s amended regulations. The construction of that regulation, however, creates the present problem. It reads as follows:
Akt. 22 (a)-16. [Regulations 94.] Acquisition or disposition ~by a corporation of its own capital stock. — Whether the acquisition or disposition by a corporation of shares of its own capital stock gives rise to taxable gain or deductible loss depends upon the real nature of the transaction,…
2Cases cited2 opinions
- Helvering v. GowranSupreme Court of the United States · 1937
- Koshland v. HelveringSupreme Court of the United States · 1936
3Cited by29 opinions
- Duncan Industries, Inc., etc. v. CommissionerUnited States Tax Court · 1979
- Cluett, Peabody & Co. v. CommissionerUnited States Tax Court · 1944
- Commissioner of Internal Revenue v. Landers CorpCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. H. W. Porter & Co., Inc.Court of Appeals for the Third Circuit · 1951
- Rollins Burdick Hunter Co. v. CommissionerUnited States Tax Court · 1947
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