Kaplan v. Commissioner
United States Tax Court
1. Held, that the amount of $ 968,000 which petitioner Jacob M. Kaplan received in 1952, in the form of unsecured, non-interest-bearing open account advances from Jemkap, Inc. (a wholly owned subsidiary of Navajo Corp., of which said petitioner was the sole stockholder), and which has never since been repaid, constituted in substance and reality, not bona fide loans from Jemkap, but rather distributions from the parent Navajo Corp. with respect to its stock, which are…
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1. Held, that the amount of $ 968,000 which petitioner Jacob M. Kaplan received in 1952, in the form of unsecured, non-interest-bearing open account advances from Jemkap, Inc. (a wholly owned subsidiary of Navajo Corp., of which said petitioner was the sole stockholder), and which has never since been repaid, constituted in substance and reality, not bona fide loans from Jemkap, but rather distributions from the parent Navajo Corp. with respect to its stock, which are taxable as dividends to said petitioner to the extent of the latter corporation's earnings and profits. Amount of Navajo's…
1Opinion of the Court
Pierce, Judge:
The Commissioner determined deficiencies in the income taxes of the petitioners for their taxable calendar years 1952 and 1953, in the amounts of $862,429.85 and $64,940.08, respectively; and he also determined that petitioners are liable for an addition to tax for the year 1952 in the amount of $52,200.50, for substantial underestimation of estimated income tax for said year.
The basic issue to be decided is: Whether the amounts of $968,000 and $116,000 which petitioner Jacob M. Kaplan received in 1952 and 1953 in the form of non-interest-bearing open account advances from…
2Cases cited11 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Helvering v. GregoryCourt of Appeals for the Second Circuit · 1934
- Estate of E. W. Chism, Deceased, Clara Chism, and Clara Chism v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Baird v. CommissionerUnited States Tax Court · 1955
6 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Alterman Foods, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1975
- Charles A. Sammons, Individually, and Estate of Rosine S. Sammons, Deceased, Charles A. Sammons, Independent v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1973
- George R. Tollefsen and Margaret A. Tollefsen v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1970
- Pierce v. CommissionerUnited States Tax Court · 1974
- Meyer v. CommissionerUnited States Tax Court · 1966
38 more not listed; retrieve them via the Exa API.