Stacey Mfg. Co. v. Commissioner
United States Tax Court
1. Prior to March 1, 1913, petitioner made a distribution of its common stock upon common stock. Held, such distribution is not includible in petitioner's equity invested capital as a distribution of stock under section 718 (a) (3), 1939 Code. Owensboro Wagon Co., 18 T. C. 1107 (revd. 209 F. 2d 617), followed. 2. Held, petitioner is not entitled to include in its equity invested capital any amount as representing goodwill acquired from its predecessor partnership.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first question is whether the pre-March 1,1913, pro rata stock distribution of common on common is properly to be included in petitioner’s equity invested capital for excess profits tax purposes in the taxable years involved under section 718 of the Internal Revenue Code of 1939, the pertinent provisions of which are set forth below.1 Specifically, the problem is whether such a distribution is to be deemed a distribution of earnings and profits within the meaning of the cited statute.
The precise question posed has previously been before this Court on two…
2Cases cited6 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Landesman-Hirschheimer Co. v. Commissioner of Int. Rev.Court of Appeals for the Sixth Circuit · 1930
- Owensboro Wagon Co. v. CommissionerUnited States Tax Court · 1952
- Owensboro Wagon Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- C. M. Hall Lamp Co. v. United StatesCourt of Appeals for the Sixth Circuit · 1953
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3Cited by2 opinions
- Baker Land and Title Company v. United StatesCourt of Appeals for the Seventh Circuit · 1956
- Stacey Mfg. Co. v. CommissionerUnited States Tax Court · 1955