Marie W. F. Nugent-Head Trust v. Commissioner

OPINION.

Rice, Judge:

The sole question is whether partial redemptions of petitioners’ stock by the Corporation in 1945 and 1947 were made at such time and in such manner as to be essentially equivalent to taxable dividends to this petitioner trust and, therefore, governed by section 115 (g) of the Internal Revenue Code rather than by section 115 (c) ,1 This is a question of fact to be determined from all of the facts and circumstances making up the record. William H. Grimditch, 37 B. T. A. 402 (1938).

It is difficult for us to see how money received by petitioners for the partial redemption of…