Sherwin v. Commissioner
United States Board of Tax Appeals
On December 20, 1937, the Mid-Continent Securities Co., a personal holding company, sold to its principal shareholders shares of stock held by it as investments at a large profit, the purchasers paying a small amount down on their contract and agreeing to pay the balance on or before December 1, 1942, with interest at 4 percent per annum. Thereafter, the purchasers received the dividends upon the shares acquired and paid interest to the seller upon their obligations.
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On December 20, 1937, the Mid-Continent Securities Co., a personal holding company, sold to its principal shareholders shares of stock held by it as investments at a large profit, the purchasers paying a small amount down on their contract and agreeing to pay the balance on or before December 1, 1942, with interest at 4 percent per annum. Thereafter, the purchasers received the dividends upon the shares acquired and paid interest to the seller upon their obligations. The respondent has determined that the sales made by the company to its shareholders may not be "recognized for income tax…
1Opinion of the Court
*331OPINION.
Smith :
These proceedings, consolidated for hearing, are for the re-determination of deficiencies in tax for 1938 as follows:
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The questions in issue are: .(1) Whether the Mid-Continent Securities Co. must include in its gross income for 1938 $82,250 paid as dividends upon certain shares of stock which that company claims to have sold to its two principal stockholders on December 20, 1937, by whom the dividends were actually received.(2) Whether petitioners John Sherwin and Francis M. Sherwin are each entitled to deduct from his gross income for 1938 interest paid to the…
2Cases cited7 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Gregory v. HelveringSupreme Court of the United States · 1935
- United States v. IshamSupreme Court of the United States · 1873
- Dalton v. BowersSupreme Court of the United States · 1932
- Klein v. Board of Tax Supervisors of Jefferson Cty.Supreme Court of the United States · 1930
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- A. F. Lowes Lumber Co. v. CommissionerUnited States Tax Court · 1960
- Sherwin v. CommissionerUnited States Board of Tax Appeals · 1942