Messer v. Commissioner
United States Tax Court
Webb Company, with both common and preferred stock outstanding, redeemed some of its preferred shares for cash and other assets for the purpose of distributing them as a dividend on the remaining preferred stock and did in fact promptly distribute such shares. There was no dispute that its accumulated earnings and profits were sufficient to support that distribution. Petitioner owned both preferred and common.
Read the full summary
Webb Company, with both common and preferred stock outstanding, redeemed some of its preferred shares for cash and other assets for the purpose of distributing them as a dividend on the remaining preferred stock and did in fact promptly distribute such shares. There was no dispute that its accumulated earnings and profits were sufficient to support that distribution. Petitioner owned both preferred and common. The distribution changed his proportionate interest in the corporation as well as that of the other holders of the preferred. Held, the dividend constituted income under section 115 (f)…
1Opinion of the Court
John A. Messer, Sr., Petitioner, v. Commissioner of Internal Revenue, Respondent
Messer v. Commissioner
Docket No. 32980
United States Tax Court
20 T.C. 264; 1953 U.S. Tax Ct. LEXIS 173;
April 30, 1953, Promulgated
Decision will be entered under Rule 50.
Webb Company, with both common and preferred stock outstanding, redeemed some of its preferred shares for cash and other assets for the purpose of distributing them as a dividend on the remaining preferred stock and did in fact promptly distribute such shares. There was no dispute that its accumulated earnings and profits were sufficient to support…
2Cases cited18 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. GowranSupreme Court of the United States · 1937
- United States v. PhellisSupreme Court of the United States · 1921
- Weiss v. StearnSupreme Court of the United States · 1924
- Koshland v. HelveringSupreme Court of the United States · 1936
13 more not listed; retrieve them via the Exa API.