Brown v. Commissioner
United States Board of Tax Appeals
1. A distribution among shareholders of a greater number of new shares in exchange for old may be as much a stock dividend as a distribution of new shares in addition to the old, which are retained. 2. Sec. 201(g), Revenue Act of 1926, is a special provision, and is not applicable arbitrarily to every cash redemption of shares issued as a stock dividend, but only in accordance with its terms to such cancellation and redemption as, by reason of its particular circumstances in…
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1. A distribution among shareholders of a greater number of new shares in exchange for old may be as much a stock dividend as a distribution of new shares in addition to the old, which are retained. 2. Sec. 201(g), Revenue Act of 1926, is a special provision, and is not applicable arbitrarily to every cash redemption of shares issued as a stock dividend, but only in accordance with its terms to such cancellation and redemption as, by reason of its particular circumstances in time and manner, is essentially equivalent to a taxable dividend.
1Opinion of the Court
OPINION.
Sterniiagen:
The respondent determined deficiencies in income taxes for 1925 against the petitioners in the amounts of $15,976.18 and $13/105.73, respectively, by treating as dividends taxable under section 201(g), Revenue Act of 1926, amounts received in 1925 by the petitioner’s decedent in Docket No. 47677, and the petitioner in Docket No. 48136, (both being herein called petitioner), upon the cancellation or redemption of shares of preferred stock of the Squire Dingee Company, which were received by them in 1922 by virtue of an increase in the capital stock of that company. The…
2Cases cited7 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Towne v. EisnerSupreme Court of the United States · 1918
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Gibbons v. MahonSupreme Court of the United States · 1890
- Hellmich v. HellmanSupreme Court of the United States · 1928
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3Cited by18 opinions
- Penfield v. DavisDistrict Court, N.D. Alabama · 1952
- Hyman v. CommissionerUnited States Board of Tax Appeals · 1933
- Boehringer v. CommissionerUnited States Board of Tax Appeals · 1933
- Adler v. CommissionerUnited States Board of Tax Appeals · 1934
- Clark v. CommissionerUnited States Board of Tax Appeals · 1933
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