Sandoval Zinc Co. v. Commissioner
United States Tax Court
Petitioner purchased 900 of its 1,500 outstanding shares of capital stock in 1948 and simultaneously entered into contracts with two of its employees to resell such shares to them equally over a period of years at the same price for which it purchased the stock. It did not retire the purchased stock but held it in its treasury as treasury stock until resold.
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Petitioner purchased 900 of its 1,500 outstanding shares of capital stock in 1948 and simultaneously entered into contracts with two of its employees to resell such shares to them equally over a period of years at the same price for which it purchased the stock. It did not retire the purchased stock but held it in its treasury as treasury stock until resold. Held, in determining petitioner's excess profits credit based on income under section 435, I. R. C. 1939, the proceeds from the resale of the stock in 1951 and 1952 do not constitute "money * * * paid in for stock" as that phrase is used…
1Opinion of the Court
OPINION.
Arundele, Judge:
Respondent determined a deficiency in income (excess profits) tax for the taxable year 1951 in the amount of $5,909.14.
The only question is whether the proceeds received by petitioner from the sale to two of its employees of certain shares of its own stock which petitioner had previously purchased from one of its stockholders at the same price for which it resold it, and had not retired but was, prior to the resale, holding in its treasury, constituted “money * * * paid in for stock” as that phrase is used in section 435 (g) (3) (A), I. R. C. 1939. The year 1952 is…
2Cases cited7 opinions
- Helvering v. WinmillSupreme Court of the United States · 1938
- Borg v. International Silver Co.Court of Appeals for the Second Circuit · 1925
- Kirschenbaum v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1946
- Amelia H. Cohen Trust v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1941
- Chetlain v. Republic Life InsuranceIllinois Supreme Court · 1877
2 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Colt's Mfg. Co. v. CommissionerUnited States Tax Court · 1960
- Colt's Mfg. Co. v. CommissionerUnited States Tax Court · 1960
- Colt's Mfg. Co. v. CommissionerUnited States Tax Court · 1960
- Sandoval Zinc Co. v. CommissionerUnited States Tax Court · 1958