Burdick v. Commissioner
United States Board of Tax Appeals
1. Where, after the death of the owner, stock is distributed by his executors to a trust created by his will, and thereafter, while the stock is held as part of the corpus of the trust, the trustees receive an extraordinary cash dividend, the portion of such dividend paid out of surplus of the corporation existing at the date of decedent's death is not a return of capital to the trust, but a dividend and income within the revenue acts; and its character as such, for Federal…
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1. Where, after the death of the owner, stock is distributed by his executors to a trust created by his will, and thereafter, while the stock is held as part of the corpus of the trust, the trustees receive an extraordinary cash dividend, the portion of such dividend paid out of surplus of the corporation existing at the date of decedent's death is not a return of capital to the trust, but a dividend and income within the revenue acts; and its character as such, for Federal tax purposes, is not affected by any rule of local law that portions of the dividend paid from existing surplus at the…
1Opinion of the Court
OPINION.
MuRdock:
The petitioner is tbe same in each case, being a trust created under the will of Joel W. Burdick. The Commissioner determined a deficiency of $7,388.76 for 1927 (Docket No. 46322) and *732one of $7,067.60 for 1929 (Docket No. 61009). The issues, as stated by the petitioner, are: (1) Whore the value of stock in a corporation has been appraised for estate tax purposes at the date of death of the owner and such stock is distributed by the executors to the trustees under decree of court at the appaised value, and where extraordinary dividends are thereafter declared and paid in cash,…
2Cases cited9 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Lynch v. HornbySupreme Court of the United States · 1918
- Gibbons v. MahonSupreme Court of the United States · 1890
- Peabody v. EisnerSupreme Court of the United States · 1918
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3Cited by1 opinion
- Burdick v. CommissionerUnited States Board of Tax Appeals · 1934