S. A. Woods Machine Co. v. Commissioner
United States Board of Tax Appeals
GAIN OR LOSS. - Where petitioner had a claim for unliquidated damages and accepted shares of its own capital stock in a settlement thereof, and immediately canceled and retired the stock and added the par value thereof to surplus, no gain or loss resulted.
1Opinion of the Court
*819OPINION.
Black :
A number of cases have been considered by the Board involving the purchase by a corporation of its own capital stock and we have uniformly held that the corporation realizes no gain or loss from the purchase or sale of its own stock. Simmons & Hammond Mfg. Co., 1 B. T. A. 803; Farmers Deposit National Bank, 5 B. T. A. 520; H. S. Crooker Co., 5 B. T. A. 537.
While the circumstances under which petitioner acquired the shares of its own common stock from the Yates Co. in this proceeding are by no means the same as in the cases above cited, we think the same rule must govern. When…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Towne v. EisnerSupreme Court of the United States · 1918
- United States v. PhellisSupreme Court of the United States · 1921
3Cited by8 opinions
- RJ Reynolds Tobacco Co. v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1938
- Niagara Share Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Allyne-Zerk Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Hammond Iron Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- National Home Owners Service Corp. v. CommissionerUnited States Board of Tax Appeals · 1939
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