Herbert A. Dunn and Georgia E. Dunn v. Commissioner of Internal Revenue

DOOLING, District Judge:

The Commissioner appeals from a decision of the Tax Court (Theodore Tannenwald, Jr., Judge) holding that amounts received by appellee taxpayer, Georgia Dunn, 1 in 1970 and 1971 from Bresee Chevrolet Co., Inc. (“Bresee”) were received in complete redemption of all her stock in Bresee, and that immediately after the distribution she had no interest in Bresee as an officer, director, employee or otherwise, other than an interest as a creditor. In consequence, the Tax Court held, the amounts the taxpayer received were capital gains and not dividends, as the Commissioner…