National Clothing Co. v. Commissioner
United States Tax Court
Deductions -- Compensation -- Stock Sale and Repurchase Plan. -- The excess of the book value of stock paid by a corporation during the taxable years to repurchase the stock over the book value at the time the corporation transferred the stock to key employees pursuant to a contract which provided, inter alia, that the key employees purchase stock at book value and give in exchange non-interest-bearing demand notes with the stock as security, that the corporation apply all…
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Deductions -- Compensation -- Stock Sale and Repurchase Plan. -- The excess of the book value of stock paid by a corporation during the taxable years to repurchase the stock over the book value at the time the corporation transferred the stock to key employees pursuant to a contract which provided, inter alia, that the key employees purchase stock at book value and give in exchange non-interest-bearing demand notes with the stock as security, that the corporation apply all dividends on the notes until paid, and that the corporation have the right to repurchase the stock at book value upon the…
1Opinion of the Court
OPINION.
Murdoch, Judge:
The Commissioner determined deficiencies in income tax of $20,704.16 and $27,226.75 against the corporation for its fiscal years ended January 31, 1949 and 1950, and he also determined a deficiency in income tax against Avery of $8,908.13 for the calendar year 1949. The only issue for decision is whether certain amounts represented additional compensation from the corporation to employees or whether they represented a part of the purchase price of stock. The parties have filed a stipulation and joint exhibits which the Court adopts as findings of fact.
The National…
2Cases cited6 opinions
- Commissioner v. SmithSupreme Court of the United States · 1945
- Hudson Motor Car Co. v. United StatesUnited States Court of Claims · 1933
- Indianapolis Glove Co. v. United StatesCourt of Appeals for the Seventh Circuit · 1938
- Alger-Sullivan Lumber Co. v. Commissioner of Int. Rev.Court of Appeals for the Fifth Circuit · 1932
- Moore v. McGrawlCourt of Appeals for the Fifth Circuit · 1933
1 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- James Marquis Hedrick v. United StatesCourt of Appeals for the Tenth Circuit · 1966
- Worthy v. CommissionerUnited States Tax Court · 1974
- Estate of Katz v. CommissionerUnited States Tax Court · 1968
- Marts, Inc. v. CommissionerUnited States Tax Court · 1960
- National Clothing Co. v. CommissionerUnited States Tax Court · 1955
1 more not listed; retrieve them via the Exa API.