F. Brody & Sons Co. v. Commissioner
United States Tax Court
Under the facts, held, that a certain distribution made by petitioner to its stockholders in 1918 was a cash dividend and that the stock simultaneously issued to its then stockholders in proportion to their existing stock holdings in return for checks received from said stockholders was sold to the stockholders for cash and the amount thereof should be included in petitioner's equity invested capital.
1Opinion of the Court
OPINION.
Harlan, Judge'.
The Commissioner contends that when the taxpayer in 1918 distributed checks to its stockholders in proportion to their existing stockholdings in a total amount equal to its surplus and special reserve accounts, or $227,437.63, and concurrently therewith delivered stock to said stockholders having a par value of $275,000 upon receipt of checks from its stockholders of $275,000, the taxpayer in legal effect declared a stock dividend of $227,437.63 and actually sold stock only to the value of $47,562.37. The Commissioner contends also that the taxpayer is entitled, under…
2Cases cited2 opinions
- United States v. MellonCourt of Appeals for the Third Circuit · 1922
- United States v. MellonDistrict Court, W.D. Pennsylvania · 1919
3Cited by7 opinions
- Lester Lumber Co. v. CommissionerUnited States Tax Court · 1950
- Geo. W. Ultch Lumber Co. v. CommissionerUnited States Tax Court · 1953
- F. Brody & Sons Co. v. CommissionerUnited States Tax Court · 1948
- Geo. W. Ultch Lumber Co. v. CommissionerUnited States Tax Court · 1953
- Geo. W. Ultch Lumber Co. v. CommissionerUnited States Tax Court · 1953
2 more not listed; retrieve them via the Exa API.