Legal Opinion

Wood v. Commissioner

United States Board of Tax Appeals

Decided January 11, 1934No. Docket No. 43971Published

In 1924 the decedent was the owner of 2,082 shares of preferred stock of the Woodward Iron Co. upon which there were past due dividends of $28,107. The company had on hand throughout 1924 cash in excess of $1,000,000, but it desired to retain a large portion of it for use in its business.

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In 1924 the decedent was the owner of 2,082 shares of preferred stock of the Woodward Iron Co. upon which there were past due dividends of $28,107. The company had on hand throughout 1924 cash in excess of $1,000,000, but it desired to retain a large portion of it for use in its business. It voted to increase its preferred capital stock in the amount of $405,000, declared a cash dividend of $405,000, and gave the preferred stockholders the right to receive the dividends in cash or at their option to subscribe for additional shares of preferred stock at par to the amount of the accumulated…

1Opinion of the Court

L. ELMER WOOD, JAMES E. OSBORN, JOHN S. BRAYTON, ADMINISTRATORS FOR ESTATE OF SOLOMON WOODWARD, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Wood v. Commissioner

Docket No. 43971.

United States Board of Tax Appeals

29 B.T.A. 735; 1934 BTA LEXIS 1488;

January 11, 1934, Promulgated

In 1924 the decedent was the owner of 2,082 shares of preferred stock of the Woodward Iron Co. upon which there were past due dividends of $28,107. The company had on hand throughout 1924 cash in excess of $1,000,000, but it desired to retain a large portion of it for use in its business. It voted to…

2Cases cited1 opinion

  1. Wood v. CommissionerUnited States Board of Tax Appeals · 1934

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