Ward M. Canaday, Inc. v. Commissioner
United States Board of Tax Appeals
1. A distribution by a corporation of all of its assets in excess of an amount equal to the par value of its outstanding capital stock, held, a distribution in liquidation rather than an ordinary dividend, where, some months before the distribution, it had disposed of all of the assets with which it theretofore had conducted its business for stock and notes and thereafter limited its activities to the conversion into cash of some of the securities received and the retirement…
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1. A distribution by a corporation of all of its assets in excess of an amount equal to the par value of its outstanding capital stock, held, a distribution in liquidation rather than an ordinary dividend, where, some months before the distribution, it had disposed of all of the assets with which it theretofore had conducted its business for stock and notes and thereafter limited its activities to the conversion into cash of some of the securities received and the retirement of stock of a certain class and, on the same day when the distribution, supra, was authorized and made, it passed a…
1Opinion of the Court
OPINION.
Murdock :
The Commissioner determined a deficiency of $63,061.16 for the year 1928. The petitioner assigns as error the action of the Commissioner in holding (1) that the distribution of stocks and securities received by the petitioner as a stockholder of the Dealers Finance Co., pursuant to a resolution of the board of directors of the latter corporation passed on December 26, 1928, declaring as a dividend its earúed surplus, consisting of stocks and securities in excess of a sum equal to $125,000, the par value of its outstanding capital stock, constituted a liquidating dividend, and…
2Cases cited13 opinions
- Hellmich v. HellmanSupreme Court of the United States · 1928
- Rochester Railway Co. v. City of RochesterSupreme Court of the United States · 1907
- Guild v. CommissionerUnited States Board of Tax Appeals · 1930
- Gossett v. CommissionerUnited States Board of Tax Appeals · 1931
- Brown v. CommissionerUnited States Board of Tax Appeals · 1932
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3Cited by2 opinions
- Herald A. O'Neill and G. Evelyn O'neill, His Wife v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
- Ward M. Canaday, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933