When a company pays dividends to shareholders of a company that is not a corporation, does the dividend amount to income or capital?

distribution in that manner, the stockholders receive the representative of income, and not of capital. I do not think that it is possible to distinguish that case as an authority upon the question before us. It may be true, as the appellant contends, that McLouth v. Hunt declared no hard and fast rule, that stock dividends are always to be treated as [172 N.Y. 143]income, and that each case must be decided upon its own facts; but the general rule which it enunciated seems to apply very exactly to the conditions of the present case.