Kelham v. Commissioner
United States Tax Court
1. In determining earnings or profits accumulated after February 28, 1913, held that capital impaired by pre-March 1, 1913, operating losses must be restored out of subsequent earnings or profits. 2. Where shares of a corporation are forfeited or "bid" in for the amount of unpaid assessments or calls thereon and after being carried on the books of the corporation as treasury shares for some years and, at a time when the corporate capital stands impaired from operating…
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1. In determining earnings or profits accumulated after February 28, 1913, held that capital impaired by pre-March 1, 1913, operating losses must be restored out of subsequent earnings or profits. 2. Where shares of a corporation are forfeited or "bid" in for the amount of unpaid assessments or calls thereon and after being carried on the books of the corporation as treasury shares for some years and, at a time when the corporate capital stands impaired from operating losses, are issued in consideration for the cancellation of notes of the corporation which had been given to cover advances to…
1Opinion of the Court
Grace H. Kelham, Petitioner, et al., * v. Commissioner of Internal Revenue, Respondent
Kelham v. Commissioner
Docket Nos. 5333, 5334, 5495, 5559, 5560
United States Tax Court
13 T.C. 984; 1949 U.S. Tax Ct. LEXIS 12;
December 20, 1949, Promulgated
Decisions will be entered under Rule 50.
1. In determining earnings or profits accumulated after February 28, 1913, held that capital impaired by pre-March 1, 1913, operating losses must be restored out of subsequent earnings or profits.
2. Where shares of a corporation are forfeited or "bid" in for the amount of unpaid assessments or calls thereon and after…
Also in this document: Concurrence; Dissent.
2Cases cited23 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
- Irwin v. GavitSupreme Court of the United States · 1925
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
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