Capital Estates, Inc. v. Commissioner
United States Board of Tax Appeals
1. A corporation proposing to declare a stock dividend sent a notice to shareholders seeming to give each an election to choose stock or cash but adding that, since it had insufficient cash, the dividend would, in the event that cash were chosen, be passed. No shareholder "elected" cash, and the dividend was declared in stock without reference in the resolution to any election.
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1. A corporation proposing to declare a stock dividend sent a notice to shareholders seeming to give each an election to choose stock or cash but adding that, since it had insufficient cash, the dividend would, in the event that cash were chosen, be passed. No shareholder "elected" cash, and the dividend was declared in stock without reference in the resolution to any election. Held, that no election was given; that, under section 115(f)(2), Revenue Act of 1936, the stock dividend was not taxable to the shareholders, and that it did not provide the basis for a dividends paid credit under…
1Opinion of the Court
CAPITAL ESTATES, INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Capital Estates, Inc. v. Commissioner
Docket No. 104036.
United States Board of Tax Appeals
46 B.T.A. 986; 1942 BTA LEXIS 792;
April 17, 1942, Promulgated
1. A corporation proposing to declare a stock dividend sent a notice to shareholders seeming to give each an election to choose stock or cash but adding that, since it had insufficient cash, the dividend would, in the event that cash were chosen, be passed. No shareholder "elected" cash, and the dividend was declared in stock without reference in the resolution to…
2Cases cited5 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Gibbons v. MahonSupreme Court of the United States · 1890
- Pacific Grape Products Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Capital Estates, Inc. v. CommissionerUnited States Board of Tax Appeals · 1942
- Humphryes Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941