Johnson v. Commissioner
United States Tax Court
T was the owner of 120 shares of class B stock of Missouri Pacific Railroad Co. (MoPac). There were only two classes of stock, A and B. One share of each class was entitled to one vote. The A stock was entitled to a noncumulative annual preferred dividend not to exceed $ 5 per share and a preferred distribution limited to $ 100 per share on liquidation.
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T was the owner of 120 shares of class B stock of Missouri Pacific Railroad Co. (MoPac). There were only two classes of stock, A and B. One share of each class was entitled to one vote. The A stock was entitled to a noncumulative annual preferred dividend not to exceed $ 5 per share and a preferred distribution limited to $ 100 per share on liquidation. The B stock was entitled, without limitation, to annual dividends and distribution on liquidation after the requirements of the A stock were satisfied. In substance, the B stockholders were the equity owners of MoPac. However, approximately 98…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined a deficiency of $52,008.13 in petitioner’s income tax for the taxable year ended December 31, 1974. The principal issue is whether a $102,000 cash distribution received by petitioner, as part of an exchange of stock for stock plus cash in a recapitalization of the Missouri Pacific Railroad Co. is taxable to him as a dividend, pursuant to sections 368(a)(1)(E) and 356(a)(1) and (2), I.R.C. 1954, or whether such cash may, in the circumstances of this case, be lumped together with other cash received by him as proceeds of a sale of a portion of his…
2Cases cited18 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Commissioner v. Estate of BedfordSupreme Court of the United States · 1945
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Zenz v. QuinlivanCourt of Appeals for the Sixth Circuit · 1954
13 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Clark v. CommissionerUnited States Tax Court · 1986
- Microdot, Inc. v. United StatesCourt of Appeals for the Second Circuit · 1984
- Clark v. CommissionerUnited States Tax Court · 1986
- Johnson v. CommissionerUnited States Tax Court · 1982