Adams v. Commissioner
United States Tax Court
Debentures distributed to petitioner by a corporation of which he was the principal common stockholder in connection with elimination of old common stock and issuance of new without par value, held, on facts failing to show corporate business purpose for the transaction, to constitute a taxable dividend to the extent of their value and of the corporation's accumulated earnings, notwithstanding that surplus account remained unchanged on corporate books.
1Opinion of the Court
OPINION.
Oppek, Judge:
An opinion in this proceeding was promulgated on April 26, 1945 (4 T. C. 1186) which, pursuant to subsequent order, was referred to the Court for review and is to be considered superseded by the present opinion.
As in Alice H. Bazley, 4 T. C. 897, the first question for disposition here is whether the nonrecognition provisions of section 112 are applicable to the receipt by petitioner of debentures in a transaction involving the cancellation of previously outstanding common stock and the issuance of new no par common. This in turn depends upon whether we can find as a fact…
2Cases cited12 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. GowranSupreme Court of the United States · 1937
- United States v. PhellisSupreme Court of the United States · 1921
- Commissioner v. Estate of BedfordSupreme Court of the United States · 1945
- Commissioner v. WheelerSupreme Court of the United States · 1945
7 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Bazley v. CommissionerSupreme Court of the United States · 1947
- Lewis v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Wolf Envelope Co. v. CommissionerUnited States Tax Court · 1951
- Overton v. CommissionerUnited States Tax Court · 1946
- Parshelsky v. CommissionerUnited States Tax Court · 1960
6 more not listed; retrieve them via the Exa API.