Bass v. Commissioner
United States Board of Tax Appeals
STOCK DIVIDEND. - A taxable stock dividend resulted where preferred stock was issued proportionately to the holders of no par value common stock and the only change in the no par value common stock, the only other outstanding stock, was to reduce its "stated value" by an amount equal to the par value of the preferred stock.
1Opinion of the Court
*1119OPINION.
Murdock :
The petitioner argues that there was a recapitalization which, under the definition in section 112 (g) (1) (D) of the Bevenue Act of 1936, amounted to a reorganization and there was an exchange of stock for stock within section 112 (b) (3), so that no gain or loss from the transaction can be recognized. The Commissioner is not contending that taxable gain resulted from the transaction. He has determined that the issuance of the preferred stock to the holders of the common stock was a taxable dividend, and the issue is whether or not that determination is correct. The…
2Cases cited6 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. GowranSupreme Court of the United States · 1937
- United States v. PhellisSupreme Court of the United States · 1921
- Koshland v. HelveringSupreme Court of the United States · 1936
- Rockefeller v. United StatesSupreme Court of the United States · 1921
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Charles Sumner Bird v. United StatesCourt of Appeals for the First Circuit · 1957
- Bird v. United StatesDistrict Court, D. Massachusetts · 1956
- Bass v. CommissionerUnited States Board of Tax Appeals · 1941
- Fischer v. CommissionerUnited States Board of Tax Appeals · 1942
- Stern v. CommissionerUnited States Board of Tax Appeals · 1942