Legal Opinion

Boyle v. Commissioner

United States Tax Court

Decided June 30, 1950No. Docket No. 21624PublishedCited by 1 opinion

Petitioner's share of payments received from a corporation by him and the two other principal stockholders in exchange for a portion of the stock, being made for no corporate reason and not affecting petitioner's ultimate proportional interest in the company, held on facts essentially equivalent to the distribution of a taxable dividend. Section 115 (g), Internal Revenue Code.

1Opinion of the Court

OPINION.

Oppek, Judge-.

Placing upon the operative events the construction most favorable to petitioner, the most that can be said is that a desire arose on the part of the principal stockholders to get their money out of the business, but that conditions prevented an outright sale to outsiders. Much of the significant detail remains a mystery,1 but we know that a plan was' suggested and ultimately carried out by which the corporation acquired most of the stock of two of the stockholders, and subsequently the third, at an identical figure, and that there then remained at the disposal of…

2Cases cited3 opinions

  1. United States v. KatzSupreme Court of the United States · 1926
  2. Dr. Pepper Bottling Co. v. CommissionerUnited States Tax Court · 1942
  3. Murphy v. CasselmanNorth Dakota Supreme Court · 1913

3Cited by1 opinion

  1. Boyle v. CommissionerUnited States Tax Court · 1950

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