Priester v. Commissioner
United States Tax Court
A corporation which had only two stockholders, and in which the petitioner held the minority stock interest, purchased or redeemed all the shares of its majority stockholder at a price of $ 113,000, then canceled such shares -- whereupon the petitioner became the sole remaining stockholder.
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A corporation which had only two stockholders, and in which the petitioner held the minority stock interest, purchased or redeemed all the shares of its majority stockholder at a price of $ 113,000, then canceled such shares -- whereupon the petitioner became the sole remaining stockholder. Held, that the corporation's payment of said sum of $ 113,000 to its majority stockholder in complete redemption of all his shares, did not cause petitioner to become chargeable with a constructive distribution of a taxable dividend to him of the same amount. Held, further, that the corporation's payment…
1Opinion of the Court
Pierce, Judge:
The respondent determined a deficiency in the income tax of petitioners for the calendar year 1957, in the amount of $75,518.29.
The issues for decision are:
Where a corporation which had only two stockholders, and in which the petitioner held the minority stock interest, purchased or redeemed all the shares of its majority stockholder for a price of $118,000, and then canceled such shares, did this transaction—(1) Cause petitioner to become chargeable with a constructive distribution of a “dividend” to him of $113,000 — being the same amount which the corporation paid to its…
2Cases cited13 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Eisner, Internal Revenue Collector v. MacOmberSupreme Court of the United States · 1919
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- Joseph R. Holsey and Eleanor T. Holsey v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Decker v. CommissionerUnited States Tax Court · 1959
8 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Enoch v. CommissionerUnited States Tax Court · 1972
- Rushing v. CommissionerUnited States Tax Court · 1969
- Ciaio v. CommissionerUnited States Tax Court · 1967
- Edgar S. Idol, Katherine G. Idol, and Speedway Transports, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Esmark, Inc. v. CommissionerUnited States Tax Court · 1988
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