Long v. Commissioner
United States Tax Court
Petitioner was the owner of 12,121 of the 23,417 outstanding shares of common stock of the A. Nash Co. During the period 1920 to 1924, that company had capitalized earnings and profits accumulated since March 1, 1913, in the sum of $ 1,687,500 by issuance of 16,875 shares of $ 100 par value, in nontaxable stock dividends.
Read the full summary
Petitioner was the owner of 12,121 of the 23,417 outstanding shares of common stock of the A. Nash Co. During the period 1920 to 1924, that company had capitalized earnings and profits accumulated since March 1, 1913, in the sum of $ 1,687,500 by issuance of 16,875 shares of $ 100 par value, in nontaxable stock dividends. On December 30, 1932, prior to the acquisition by petitioner of his stock, the par value of all the corporate stock was reduced from $ 100 to $ 25 per share and the total amount of that reduction was entered on the books as "capital surplus." This total included $ 1,265,625…
1Opinion of the Court
OPINION.
Leech, Judge-.
In December 1939, the A. Nash Co. had issued and outstanding 23,417 shares of common stock of the par value of $25 per share, which was the only class of stock it was authorized to issue at that time. Of these shares petitioner held 12,121, a majority interest. On December 20,1939, that company authorized a cash distribution of $9 per share, which was paid on December 29,1939. Petitioner received a total amount of $109,089. On his 1939 Federal income tax return he reported as income $5,441.12, treating the balance, $103,647.88, as a return of capital. The respondent…
2Cases cited7 opinions
- Commissioner v. Estate of BedfordSupreme Court of the United States · 1945
- Commissioner v. WheelerSupreme Court of the United States · 1945
- Foster v. United StatesSupreme Court of the United States · 1938
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
2 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Pullman, Inc. v. CommissionerUnited States Tax Court · 1947
- Avco Mfg. Corp. v. CommissionerUnited States Tax Court · 1956
- Estate of Chandler v. CommissionerUnited States Tax Court · 1954
- Great Northern Investments, Inc. v. Commissioner of TaxationSupreme Court of Minnesota · 1964
- Sheehan v. DanaCourt of Appeals for the Eighth Circuit · 1947
10 more not listed; retrieve them via the Exa API.