BERETTA v. COMMISSIONER
United States Tax Court
1. Petitioners were stockholders of a corporation which sold a part of its capital assets for cash and distributed the cash plus a certain amount as depreciation reserve ratably to the stockholders on each of their shares.
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1. Petitioners were stockholders of a corporation which sold a part of its capital assets for cash and distributed the cash plus a certain amount as depreciation reserve ratably to the stockholders on each of their shares. Following the distribution the corporation amended its charter and reduced its capital stock from $ 500,000 to $ 250,000. Such reduction was put into effect by stamping on each outstanding certificate of stock that the par value was reduced from $ 100 per share to $ 50 per share. Although the corporation's business was curtailed substantially by the sale of a part of its…
1Opinion of the Court
OPINION.
Black, Judge:
The petitioners contend that the $135,000 and the $90,000 distributed to shareholders by the Laredo Bridge Co. in 1937 represented capital distributions made in “partial liquidation” of that corporation within subdivisions (c) and (i) of section 115 of the Eevenue Act of 1936.
Petitioners contend in the alternative that, if the Court should hold that the two distributipns in question were not made in the partial liquidation of the corporation, nevertheless they were made out of capital, except to the extent of $45,006.73 accumulated earnings available for distribution, and…
2Cited by41 opinions
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- Gross v. CommissionerUnited States Tax Court · 1955
- National Carbon Co. v. CommissionerUnited States Tax Court · 1943
- Avco Mfg. Corp. v. CommissionerUnited States Tax Court · 1956
- Kind v. CommissionerUnited States Tax Court · 1970
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