General Utils. & Operating Co. v. Commissioner
United States Board of Tax Appeals
A dividend declared by petitioner corporation, payable in stock of another corporation and so paid, did not give rise to taxable gain.
1Opinion of the Court
*938OPINION.
Aeundell:
The respondent has determined that income was realized from the transactions detailed in the findings of fact and has asserted a tax thereon. His theory is that upon the declaration of the dividend on March 22, 1928, petitioner became indebted to its stockholders in the amount of $1,071,426.25, and that the discharge of that liability by the delivery of property costing less than the amount of the debt constituted income, citing Kirby Lumber Co. v. United States, 284 U.S. 1.
There are a number of decided cases somewhat similar to this, in some of which it has been held that…
2Cases cited2 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Bacon-McMillan Veneer Co. v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by1 opinion
- General Utils. & Operating Co. v. CommissionerUnited States Board of Tax Appeals · 1934