Miele v. Commissioner
United States Tax Court
A corporation issued certificates labeled as "preferred stock" as a means of obtaining additional capital. Later the preferred stock was redeemed in a prorata redemption which left the shareholders of the corporation in exactly the same relationship with respect to the ownership of the corporation as they occupied prior to the redemption. Held: (1) The certificates issued by the corporation were preferred stock and not evidence of indebtedness.
Read the full summary
A corporation issued certificates labeled as "preferred stock" as a means of obtaining additional capital. Later the preferred stock was redeemed in a prorata redemption which left the shareholders of the corporation in exactly the same relationship with respect to the ownership of the corporation as they occupied prior to the redemption. Held: (1) The certificates issued by the corporation were preferred stock and not evidence of indebtedness. (2) The prorata distributions made by the corporation in redemption of its preferred stock were essentially equivalent to a dividend and do not…
1Opinion of the Court
Joseph Miele, Et Al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Miele v. Commissioner
Dockets Nos. 405-70, 421-70, 422-70, 423-70
United States Tax Court
56 T.C. 556; 1971 U.S. Tax Ct. LEXIS 116;
June 21, 1971, Filed
Decisions will be entered for the respondent in dockets Nos. 405-70 and 422-70.
Decisions will be entered under Rule 50 in dockets Nos. 421-70 and 423-70.
A corporation issued certificates labeled as "preferred stock" as a means of obtaining additional capital. Later the preferred stock was redeemed in a prorata redemption which left the shareholders of the…
2Cases cited41 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Gray v. PowellSupreme Court of the United States · 1941
- Benjamin D. And Madeline Prentice Gilbert v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1957
- United States v. DavisSupreme Court of the United States · 1970
36 more not listed; retrieve them via the Exa API.