S. A. MacQueen Co. v. Commissioner
United States Board of Tax Appeals
The three stockholders of the petitioner corporation, who were also its officers and directors, authorized the sale of corporate real estate to petitioner's president, who had procured a purchaser therefor at an advanced price, and who in turn sold the real estate to the said purchaser and distributed the profit realized to the shareholders in proportion to their stockholdings, pursuant to an agreement between the stockholders entered into before any of the formal steps to…
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The three stockholders of the petitioner corporation, who were also its officers and directors, authorized the sale of corporate real estate to petitioner's president, who had procured a purchaser therefor at an advanced price, and who in turn sold the real estate to the said purchaser and distributed the profit realized to the shareholders in proportion to their stockholdings, pursuant to an agreement between the stockholders entered into before any of the formal steps to effect the transfer were taken. Held, that, in substance, under the law of Pennsylvania, the sale was made by the…
1Opinion of the Court
*1340OPINION.
Smith:
The only issue is whether, by the means employed and fully recounted in our findings of fact, the petitioner successfully disposed of the real estate in question without realizing a taxable profit, the amount of which was distributed proportionately to its common stockholders. In other words, did the petitioner corporation sell the property to MacQueen in good faith in an arm’s length transaction, and did MacQueen in turn sell the property to Hatfield; or did the taxpayer, in substance, make the sale to Hatfield and realize the $65,000 profit ?
Stephen A. MacQueen, at all times…
2Cases cited8 opinions
- Jackson v. LudelingSupreme Court of the United States · 1874
- Koehler v. Black River Falls Iron Co.Supreme Court of the United States · 1863
- Stone v. Schiller Building & Loan Ass'nSupreme Court of Pennsylvania · 1930
- Cumberland Coal & Iron Co. v. ParishCourt of Appeals of Maryland · 1875
- Commonwealth Title Insurance & Trust Co. v. SeltzerSupreme Court of Pennsylvania · 1910
3 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Nace Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Chisholm v. CommissionerUnited States Board of Tax Appeals · 1934
- Kell v. CommissionerUnited States Board of Tax Appeals · 1934
- Conservative Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Fitch v. CommissionerUnited States Board of Tax Appeals · 1934
7 more not listed; retrieve them via the Exa API.