Freshman v. Commissioner
United States Board of Tax Appeals
1. Where a parent corporation received a dividend from its wholly owned subsidiary which was paid in stock of a third corporation acquired by the subsidiary in a nontaxable exchange for stock purchased by the subsidiary in 1925, and the parent corporation immediately distributes the identical property to its stockholders as a dividend, held, the dividend is a distribution in property made out of earnings accumulated after February 28, 1931, and is taxable to the stockholders…
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1. Where a parent corporation received a dividend from its wholly owned subsidiary which was paid in stock of a third corporation acquired by the subsidiary in a nontaxable exchange for stock purchased by the subsidiary in 1925, and the parent corporation immediately distributes the identical property to its stockholders as a dividend, held, the dividend is a distribution in property made out of earnings accumulated after February 28, 1931, and is taxable to the stockholders of the parent corporation to the amount of the fair market value of the property when receivable by the stockholders.…
1Opinion of the Court
*399OPINION.
Matthews :
Petitioners contend that the stock of the United Aircraft & Transport Corporation was distributed to the stockholders of Niles-Bement-Pond Co. in pursuance of a plan of reorganization and is not taxable in the hands of the stockholders of the Niles-Bement-Pond Co. If, however, the Board should decide against petitioners on that issue, then petitioners contend that the stock of the United Aircraft & Transport- Corporation is taxable to them to the extent of its fair market value on March 6, 1929, limited, however, to the amount of earned surplus of the Niles-Bement-Pond Co.…
2Cases cited3 opinions
- United States v. PhellisSupreme Court of the United States · 1921
- Rockefeller v. United StatesSupreme Court of the United States · 1921
- Peabody v. EisnerSupreme Court of the United States · 1918
3Cited by14 opinions
- Kolom v. Comm'rUnited States Tax Court · 1978
- Johnson v. CommissionerUnited States Tax Court · 1980
- Commissioner of Internal Revenue v. Shenandoah Co.Court of Appeals for the Fifth Circuit · 1943
- Estate of Uris v. CommissionerCourt of Appeals for the Second Circuit · 1979
- Ca 79-3190 Estate of Percy Uris, Deceased, Irving Trust Co., and Joanne Uris v. Commissioner of Internal Revenue, Harold D. Uris and Ruth Uris v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1979
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