Kerr v. Commissioner
United States Tax Court
Petitioner owned 100 percent of the stock of X and Y corporations. On October 24, 1955, petitioner sold his Y corporation stock to X corporation for $ 50,000. Held, the amount received by petitioner is to be treated as a distribution in redemption of the stock of X corporation under section 304, I.R.C. 1954. Held, further, the redemption by X corporation of petitioner's stock in Y corporation was a redemption essentially equivalent to a dividend under section 302, I.R.C.…
Read the full summary
Petitioner owned 100 percent of the stock of X and Y corporations. On October 24, 1955, petitioner sold his Y corporation stock to X corporation for $ 50,000. Held, the amount received by petitioner is to be treated as a distribution in redemption of the stock of X corporation under section 304, I.R.C. 1954. Held, further, the redemption by X corporation of petitioner's stock in Y corporation was a redemption essentially equivalent to a dividend under section 302, I.R.C. 1954. Held, further, an income tax imposed on a distribution which is essentially equivalent to a dividend is not repugnant…
1Opinion of the Court
Fay, Judge:
Respondent has determined a deficiency in the income tax of petitioners for the year 1955 in the amount of $26,036.45. The basic issue presented for decision is whether the amount received by petitioners from a corporation whose outstanding capital stock was owned by petitioners, in exchange for 100 percent of the outstanding capital stock of another corporation owned by petitioners, is taxable as a distribution essentially equivalent to a dividend pursuant to the provisions of sections 302 and 304 of the Internal Revenue Code of 1954.1
If the answer to this question is in the…
2Cases cited24 opinions
- Southern Pacific Co. v. LoweSupreme Court of the United States · 1918
- Bazley v. CommissionerSupreme Court of the United States · 1947
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Boyle v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
- Elizabeth N. B. Ferro v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1957
19 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Meyer v. CommissionerUnited States Tax Court · 1966
- Thomas Kerr and Barbara Kerr v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1964
- Lewis v. CommissionerUnited States Tax Court · 1966
- Haserot v. CommissionerUnited States Tax Court · 1966
- Fehrs Finance Co. v. CommissionerUnited States Tax Court · 1972
26 more not listed; retrieve them via the Exa API.