Shellabarger Grain Products Co. v. Commissioner
United States Tax Court
1. At the beginning of the taxable year the petitioner had an impairment of its paid-in capital. During the year it decided to liquidate and dissolve. It sold its assets and business and before the end of the year filed a statement of intent to dissolve with the state authorities. The petitioner had net earnings or profits for the year and, after the sale of its assets and business, made a distribution in excess of such earnings or profits.
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1. At the beginning of the taxable year the petitioner had an impairment of its paid-in capital. During the year it decided to liquidate and dissolve. It sold its assets and business and before the end of the year filed a statement of intent to dissolve with the state authorities. The petitioner had net earnings or profits for the year and, after the sale of its assets and business, made a distribution in excess of such earnings or profits. Held: (a) That the distribution was a distribution in partial liquidation; (b) That, to the extent necessary to absorb the deficit in paid-in capital, the…
1Opinion of the Court
Shellabarger Grain Products Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Shellabarger Grain Products Co. v. Commissioner
Docket No. 109510
United States Tax Court
2 T.C. 75; 1943 U.S. Tax Ct. LEXIS 143;
June 10, 1943, Promulgated
Decision will be entered under Rule 50.
1. At the beginning of the taxable year the petitioner had an impairment of its paid-in capital. During the year it decided to liquidate and dissolve. It sold its assets and business and before the end of the year filed a statement of intent to dissolve with the state authorities. The petitioner had net…
2Cases cited6 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Foster v. United StatesSupreme Court of the United States · 1938
- Shellabarger Grain Products Co. v. CommissionerUnited States Tax Court · 1943
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