Mackay v. Commissioner
United States Board of Tax Appeals
A corporation agreed to sell two separate groups of assets theretofore used in its manufacturing business at a price fixed for each group and thereafter declared a dividend in kind, payable by transferring one of such groups to its stockholders. Held, that the stockholders received the agreed purchase price for such assets and not the book value thereof as a taxable dividend.
1Opinion of the Court
*1092OPINION.
Lansdon:
The real issue here is whether the California Bag & Paper Co. sold both groups-of assets in question. If there was such a sale prior to September 14,1928, the profit realized was that of the corporation, and, added to book surplus as of that date, it was almost sufficient to distribute a dividend out of earnings accumulated after March 1, 1913, as determined by the respondent. The petitioners contend that the corporation declared and distributed a dividend in kind to them, consisting of the group of assets that had a book value of $84,105.31, and that they sold such assets on…
2Cases cited3 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Taylor Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Northwest Utilities Sec. Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by1 opinion
- Mackay v. CommissionerUnited States Board of Tax Appeals · 1934