United States v. Kirby Lumber Co.

United States v. Kirby Lumber Co.
Supreme Court of the United States
Argued October 21, 1931 Decided November 2, 1931
Full case name	United States v. Kirby Lumber Company
Citations	284 U.S. 1 (more) 52 S. Ct. 4; 76 L. Ed. 131; 1931 U.S. LEXIS 457; 2 U.S. Tax Cas. (CCH) ¶ 814; 10 A.F.T.R. (P-H) 458
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
Chief Justice Charles E. Hughes Associate Justices Oliver W. Holmes Jr. · Willis Van Devanter James C. McReynolds · Louis Brandeis George Sutherland · Pierce Butler Harlan F. Stone · Owen Roberts
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.^[1]