Meyer v. Commissioner
United States Tax Court
During the years 1938 to 1941, inclusive, Bersel Realty Co. redeemed shares of its noncumulative preferred stock out of earnings. The petitioner was its sole stockholder. Held, that the redemptions of the preferred stock were made at such time and in such manner as to be essentially equivalent to distributions of taxable dividends.
1Opinion of the Court
OPINION.
Smith, Judge:
The respondent has determined that the amounts received by the petitioner from the Bersel Realty Co. in the years 1938,1939, 1940, and 1941 were essentially equivalent to the distribution of taxable dividends by the company and that these amounts should have been included in his gross and net incomes.
The pertinent provision of the Revenue Act of 1938 and of the Internal Revenue Code is section 115, which, so far as material, reads as follows:(g) Redemption op Stock. — If a corporation cancels or redeems Its stock (whether or not such stock was issued as a stock dividend)…
2Cited by4 opinions
- Meyer v. CommissionerUnited States Tax Court · 1946
- Meyer v. CommissionerUnited States Tax Court · 1945
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- Pliner v. CommissionerUnited States Tax Court · 1961