Roberts v. Commissioner
United States Tax Court
Redemption of entire block of corporate stock formerly owned by petitioner's brother and bequeathed by him to petitioner, the surviving shareholder, held, on all facts, not a distribution essentially equivalent to a dividend under section 115 (g), Internal Revenue Code.
1Opinion of the Court
OPINION.
Opees, Judge:
Although not neatly presented as a matter of formalism, the essence of the present situation appears to us to be the redemption of the shares of one stockholder, the estate of petitioner’s brother, and its elimination as a participant in the enterprise. That this operation would not lead to the “essential equivalence” described in 115 (g) was demonstrated as long ago as Clara Louise Flinn, 37 B. T. A. 1085, acq. 1938-2 C. B. 11, where we said (1094) :
* * * Here there was a complete liquidation of the holdings of but one shareholder owning a minority of the shares. The…
2Cases cited1 opinion
- Marie W. F. Nugent-Head Trust v. CommissionerUnited States Tax Court · 1951
3Cited by1 opinion
- Roberts v. CommissionerUnited States Tax Court · 1952