Virginia Materials Corp. v. Commissioner
United States Tax Court
TIDC, a wholly owned subsidiary of petitioner, purchased stock of its parent from a shareholder of petitioner. Held, petitioner did not constructively receive a taxable distribution from its subsidiary corporation under sec. 304(a)(2) and (b)( 2)(B), I.R.C. 1954, as a result of the stock purchase. Helen M. Webb, 67 T.C. (1976), followed.
1Opinion of the Court
OPINION
Bruce, Judge:
Respondent determined a deficiency of $83,209.70 in petitioner’s Federal income tax for its taxable year ended September 30, 1970. The issues presented for our decision are (1) whether petitioner, Virginia Materials Corp., constructively received a taxable distribution when its wholly owned subsidiary, Tidewater Industrial Development Corp., purchased shares of petitioner’s stock, and if the first question is answered affirmatively, (2) whether the amount of the taxable distribution is limited to the accumulated earnings and profits of the subsidiary.
All of the facts…
2Cases cited4 opinions
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Commissioner of Internal Revenue v. Trustees Common Stock John Wanamaker PhiladelphiaCourt of Appeals for the Third Circuit · 1949
- Union Bankers Ins. Co. v. CommissionerUnited States Tax Court · 1975
- Webb v. CommissionerUnited States Tax Court · 1976
3Cited by6 opinions
- Madeline M. Stevens v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1989
- Broadview Lumber Co. v. United StatesCourt of Appeals for the Seventh Circuit · 1977
- Continental Bankers Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
- Broadview Lumber Co., Inc., Plaintiff-Appellant-Cross-Appellee v. United States of America, Defendant-Appellee-Cross-Appellant. Broadview Lumber Co., Inc., Successor-In-Interest by Statutory Merger to Allen County Lumber Co., Inc., Plaintiff-Appellant-Cross-Appellee v. United States of America, Defendant-Appellee-Cross-AppellantCourt of Appeals for the Seventh Circuit · 1977
- Continental Bankers Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
1 more not listed; retrieve them via the Exa API.