Jones v. Commissioner
United States Tax Court
1. Where the record indicates that the intention of a corporation in purchasing shares of its stock owned by petitioner was to cancel and retire it, the amount received by him constitutes a distribution in partial liquidation and is taxable as such. 2. In 1924 petitioner, the owner of common stock of a corporation, received 50 shares of the same class of stock as a stock dividend.
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1. Where the record indicates that the intention of a corporation in purchasing shares of its stock owned by petitioner was to cancel and retire it, the amount received by him constitutes a distribution in partial liquidation and is taxable as such. 2. In 1924 petitioner, the owner of common stock of a corporation, received 50 shares of the same class of stock as a stock dividend. In 1932, when 41 of the stock dividend shares were retired at par, he reported the amount received as an ordinary dividend and paid tax thereon at surtax rates only. In 1940, in computing the gain realized upon the…
1Opinion of the Court
OPINION.
Mellott, Judge:
Petitioner contests a deficiency in income tax for the calendar year 1940 in the amount of $3,652.28. Two questions are raised. The first is whether the gain realized by petitioner from the disposition of some shares of corporate stock is taxable under section 115 (c) of the Internal Revenue Code as a distribution in partial liquidation or under section 117 as a gain from the sale of capital assets. The second is the basis of the stock. The questions will be discussed in the order stated.
The facts have been stipulated and are found accordingly. Summarizing those…
2Cases cited2 opinions
- Helvering v. GowranSupreme Court of the United States · 1937
- Koshland v. HelveringSupreme Court of the United States · 1936
3Cited by9 opinions
- Gravois Planing Mill Company, Charles A. And Florence Beckemeier v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Blum v. CommissionerUnited States Tax Court · 1945
- Blum v. CommissionerUnited States Tax Court · 1945
- Blum v. CommissionerUnited States Tax Court · 1945
- Hathaway v. CommissionerUnited States Tax Court · 1945
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