Redemptions of ESOP Shares Were Deductible Dividends

Business Valuation UpdateVol. 9 No. 11
Legal and Court Case Update
November 2003
5112 Stationery and Office Supplies
453210 Office Supplies and Stationery Stores
federal taxation
redemption, convertible preferred stock, dividends, employee stock ownership plan (ESOP), income tax

Boise Cascade Corp. v. United States
329 F.3d 751, 2003 U.S. App. LEXIS 9642
May 20, 2003
Federal Court
9th Circuit
United States Court of Appeals


The question of whether the distributions to plan participants are deductible dividends depends on who owned the convertible preferred stock when the redemptions took place.

See Also

Boise Cascade Corp. v. United States

Issue is whether distributions to ESOP plan participants are deductible dividends.