|
|
Helvering v. Sprouse, 318 U.S. 604 (1943)
Contents:
Show Summary
Hide Summary
General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Helvering v. Sprouse, 318 U.S. 604 (1943)
Please note: this case begins in mid-page. It therefore shares a citation with the last page of the previous case. If you are attempting to follow a link to the last page of 318 U.S. 578, click here.
Helvering v. Sprouse No. 22 Argued November 10, 12, 1942 Decided April 5, 1943 * 318 U.S. 604
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE NINTH CIRCUIT
Syllabus
1. Where a corporation having but two classes of stock, voting common and nonvoting common, distributes to all the shareholders of both classes, in proportion to their respective holdings, a dividend of nonvoting common, the fair market value of which is its par value, and which is backed by earnings and profits available for distribution in excess of its total value, neither the voting rights of the voting common nor its right to share in dividends or in liquidation being altered by the distribution, so that the relations previously existing between all the shareholders, or between the particular shareholder and the corporation, are in no wise disturbed by the distribution, the dividend is not subject to income tax. Const., Amendment XVI; Revenue Act of 1936, § 115(f)(1). P. 606.
2. Where the sole owner of the common stock of a corporation which had common stock only, received a dividend of nonvoting preferred stock authorized by a charter amendment and the value of which was exceeded by earnings of the corporation available for dividend without changing the shareholder’s interest in the corporation or in its net value, the dividend is not taxable income. Const., Amendment XVI; Revenue Act of 1936, § 115(f)(1). P. 606.
No. 22, 122 F.2d 973, affirmed.
No. 66, 124 F.2d 315, reversed.
Review by certiorari, 316 U.S. 656, of two judgments, the one reversing a ruling which sustained a deficiency assessment of income, 42 B.T.A. 484, and the other affirming the like ruling in another case.
Contents:
Chicago: U.S. Supreme Court, "Syllabus," Helvering v. Sprouse, 318 U.S. 604 (1943) in 318 U.S. 604 318 U.S. 605. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=DSH6XYPBCVZ1ZPI.
MLA: U.S. Supreme Court. "Syllabus." Helvering v. Sprouse, 318 U.S. 604 (1943), in 318 U.S. 604, page 318 U.S. 605. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=DSH6XYPBCVZ1ZPI.
Harvard: U.S. Supreme Court, 'Syllabus' in Helvering v. Sprouse, 318 U.S. 604 (1943). cited in 1943, 318 U.S. 604, pp.318 U.S. 605. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=DSH6XYPBCVZ1ZPI.
|