Roebling v. Commissioner
United States Tax Court
Trenton Trust Co., prior to 1958, had outstanding preferred stock A, preferred stock B, and common stock. The preferred stock A was issued to the Reconstruction Finance Corp. as security for loans made in 1934 and 1936. About 90 percent of the preferred stock B had been purchased by petitioner's deceased husband in connection with the loan and was owned by petitioner in 1958. Petitioner owned about 45 percent of the common stock, the rest of which was owned by the general…
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Trenton Trust Co., prior to 1958, had outstanding preferred stock A, preferred stock B, and common stock. The preferred stock A was issued to the Reconstruction Finance Corp. as security for loans made in 1934 and 1936. About 90 percent of the preferred stock B had been purchased by petitioner's deceased husband in connection with the loan and was owned by petitioner in 1958. Petitioner owned about 45 percent of the common stock, the rest of which was owned by the general public. In 1958, a plan of recapitalization was adopted by Trenton Trust, which involved retiring all the preferred stock…
1Opinion of the Court
Drennen, Judge:
In these consolidated cases,1 respondent determined deficiencies in petitioner’s income tax for the taxable years as follows:
Year Deficiency
1965 .$18,447.43
1966 . 20,705.96
1967 . 54,475.31
1968 . 11,734.85
1969 . 20,595.73
After concessions by the parties, the issues for decision are:(1) Whether Trenton Trust Co.’s redemption of its preferred stock B from petitioner in each of the taxable years in issue was "not essentially equivalent to a dividend,” within the meaning of section 302(b)(1), I.R.C. 1954;2 and(2) Whether, as part of a 1958 plan of recapitalization under section…
2Cases cited20 opinions
- United States v. DavisSupreme Court of the United States · 1970
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Blanche S. Benjamin v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1979
- Metzger Trust v. CommissionerUnited States Tax Court · 1981
- Estate of Squier v. CommissionerUnited States Tax Court · 1961
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3Cited by17 opinions
- Merrill Lynch & Co., Inc., and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 2004
- Cerone v. CommissionerUnited States Tax Court · 1986
- Glacier State Electric Supply Co. v. CommissionerUnited States Tax Court · 1983
- Bialo v. CommissionerUnited States Tax Court · 1987
- Carl A. Pescosolido, Sr. v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1989
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