Webb v. Commissioner
United States Tax Court
In a redemption that qualified under sec. 302(a), I.R.C. 1954, corporation C, a cash method taxpayer, redeemed 50 percent of its outstanding preferred stock at less than the issuance price of such stock. Held, under sec. 312(e), I.R.C. 1954, the full amount of the redemption distribution is properly chargeable to the capital account of the preferred stock. Held, further, in computing C's earnings and profits, it may not reduce such account by its unpaid but accrued taxes.
1Opinion of the Court
William C. Webb, Petitioner v. Commissioner of Internal Revenue, Respondent
Webb v. Commissioner
Docket No. 6449-73
United States Tax Court
67 T.C. 1008; 1977 U.S. Tax Ct. LEXIS 133;
March 25, 1977, Filed
Decision will be entered under Rule 155.
In a redemption that qualified under sec. 302(a), I.R.C. 1954, corporation C, a cash method taxpayer, redeemed 50 percent of its outstanding preferred stock at less than the issuance price of such stock. Held, under sec. 312(e), I.R.C. 1954, the full amount of the redemption distribution is properly chargeable to the capital account of the preferred stock.…
2Cases cited37 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Enoch v. CommissionerUnited States Tax Court · 1972
- Commissioner v. WheelerSupreme Court of the United States · 1945
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