United States v. Kirby Lumber Co.
| United States v. Kirby Lumber Co. | |
|---|---|
| Argued October 21, 1931 Decided November 2, 1931 | |
| Full case name | United States v. Kirby Lumber Company |
| Citations | 284 U.S. 1 (more) |
| Case history | |
| Prior | Kirby Lumber Co. v. United States, 44 F.2d 885 (Ct. Cl. 1930); Cert. granted, 283 U.S. 814 (1931). |
| Holding | |
| If a corporation purchases and retires bonds at a price less than their face value or issuing price, the excess amount of the purchase price over the issuing price is a taxable gain. | |
| Court membership | |
| |
| Case opinion | |
| Majority | Holmes, joined by unanimous |
| Laws applied | |
| § 213 of the Revenue Act of 1921 | |
United States v. Kirby Lumber Co., 284 U.S. 1 (1931), was a case in which the United States Supreme Court held that when a corporation settles its debts for less than the face amount, a taxable gain has occurred.