Bruckheimer v. Commissioner
United States Board of Tax Appeals
A corporation reacquired some of its own stock by purchase for cash from its surplus. The reacquired stock, treasury stock, was distributed pro rata to all the stockholders. All the stock was common stock. Held, the distribution of the treasury common stock to the holders of common stock did not constitute income to the distributees.
1Opinion of the Court
*237OPINION.
HaeRon :
The basic question is whether on the distribution to him of the 72.51 shares of the corporation’s stock in the taxable year petitioner received taxable income in the amount of $13,587.65, the fair market value of the shares. On his return for the taxable year petitioner did not include any amount in taxable income on account of the receipt of the 72.51 shares. Eespondent included the fair market value of the 72.51 shares in taxable income for the taxable year, with the explanation that the shares constituted taxable income under section 115 (f) of the Revenue Act of 1936, the…
2Cases cited2 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Koshland v. HelveringSupreme Court of the United States · 1936
3Cited by2 opinions
- Bruckheimer v. CommissionerUnited States Board of Tax Appeals · 1942
- Syracuse Stamping Co. v. CommissionerUnited States Tax Court · 1945