Henry Mill & Timber Co. v. Commissioner
United States Board of Tax Appeals
SURTAX ON UNDISTRIBUTED PROFITS - CONTRACTS RESTRICTING DIVIDENDS. - In December 1935, petitioner negotiated a mortgage loan from a bank in the amount of $85,000. Neither the mortgage nor note contained any provision restricting the payment of dividends or disposition of earnings by petitioner during the taxable year 1936, but did require the payment of $6,000 on principal at August 1, 1936, which amount was in excess of petitioner's adjusted net income for computation of…
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SURTAX ON UNDISTRIBUTED PROFITS - CONTRACTS RESTRICTING DIVIDENDS. - In December 1935, petitioner negotiated a mortgage loan from a bank in the amount of $85,000. Neither the mortgage nor note contained any provision restricting the payment of dividends or disposition of earnings by petitioner during the taxable year 1936, but did require the payment of $6,000 on principal at August 1, 1936, which amount was in excess of petitioner's adjusted net income for computation of surtax. On December 12, 1935, petitioner's stockholders held a meeting at which it was agreed that the mortgage money…
1Opinion of the Court
HENRY MILL & TIMBER COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Henry Mill & Timber Co. v. Commissioner
Docket No. 98294.
United States Board of Tax Appeals
43 B.T.A. 1073; 1941 BTA LEXIS 1417;
March 20, 1941, Promulgated
SURTAX ON UNDISTRIBUTED PROFITS - CONTRACTS RESTRICTING DIVIDENDS. - In December 1935, petitioner negotiated a mortgage loan from a bank in the amount of $85,000. Neither the mortgage nor note contained any provision restricting the payment of dividends or disposition of earnings by petitioner during the taxable year 1936, but did require the payment of…
2Cases cited1 opinion
- Henry Mill & Timber Co. v. CommissionerUnited States Board of Tax Appeals · 1941