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Case Details

Case: Boulware v. United States
Subject(s): Tax evasion, return of capital rule
Appealed from: Ninth Circuit Court of Appeals

Docket No: 06-1509
Decision Rendered: No
Decision: None

Question(s) presented:

Holding of appellate court: The "return of capital" rule, championed by the Second Circuit in United States v. D'Agostino, 145 F.3d 69 (2d Cir. 1998), holds that when a corporation that does not have profits or earnings distributes money to a shareholder, the money is a nontaxable return of capital up to the shareholder's basis in his stock. The Ninth Circuit has long held that the return of capital rule may be invoked only when a shareholder can demonstrate that at the time the money was distributed, it was treated as a return of capital. United States v. Miller, 545 F.2d 1204 (9th Cir. 1976).

Date of Oral Arguments Your Prediction Your Prediction by Justice Update
Affirm Reverse Vacate Justice Affirm Reverse Vacate
Jan 08, 2008 Alito
Breyer
Ginsburg
Kennedy
Roberts
Scalia
Souter
Stevens
Thomas