Burrus Mills, Inc. v. Commissioner
United States Tax Court
Income -- Corporation Dealing in Its Own Shares. -- A corporation sold shares of its own stock, which it had acquired from former stockholders as part consideration in sale of a flour mill and which were held in its treasury, to corporate employees under an employee stock purchase plan.
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Income -- Corporation Dealing in Its Own Shares. -- A corporation sold shares of its own stock, which it had acquired from former stockholders as part consideration in sale of a flour mill and which were held in its treasury, to corporate employees under an employee stock purchase plan. Held, the corporation realized taxable gain under Regulations 111, section 29.22(a)-15. Commissioner v. Batten, Barton, Durstine & Osborn, Inc., 171 F. 2d 474, reversing 9 T. C. 448; Commissioner v. Rollins Burdick Hunter Co., 174 F. 2d 698, reversing 9 T. C. 169; Commissioner v. H. W. Porter & Co., 187 F. 2d…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The parties are agreed that gain was realized on the sale of the treasury shares here involved and the amount thereof. The only question is whether the gain was taxable under Regulations 111, section 29.22 (a).1
Petitioner acquired the shares in question in the 1930’s in transactions which amounted to purchases and sales, albeit the bulk of the shares was transferred to petitioner in partial consideration for the sale of corporate property. Dorsey Co. v. Commissioner, (C. A. 5) 76 F. 2d 339; Commissioner v. Boca Ciega Development Co., (C. A. 3) 66 F. 2d 1004. The shares…
2Cases cited8 opinions
- Commissioner v. Batten, Barton, Durstine & Osborn, Inc.Court of Appeals for the Second Circuit · 1948
- Commissioner of Internal Revenue v. Landers CorpCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. Rollins Burdick Hunter Co.Court of Appeals for the Seventh Circuit · 1949
- Dorsey Co. v. CommissionerCourt of Appeals for the Fifth Circuit · 1935
- Commissioner of Internal Revenue v. H. W. Porter & Co., Inc.Court of Appeals for the Third Circuit · 1951
3 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Duncan Industries, Inc., etc. v. CommissionerUnited States Tax Court · 1979
- Burrus Mills, Inc. v. CommissionerUnited States Tax Court · 1954
- Duncan Industries, Inc., etc. v. CommissionerUnited States Tax Court · 1979