Bush Bros. & Co. v. Commissioner
United States Tax Court
Petitioner is a family-owned corporation. During the period in question, petitioner distributed to its shareholders five dividends in kind, consisting of bills of sale to properties purchased from a supplier. In each of the five situations, the shareholders immediately sold the properties back to the supplier. Thus the properties never left the possession of the supplier.
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Petitioner is a family-owned corporation. During the period in question, petitioner distributed to its shareholders five dividends in kind, consisting of bills of sale to properties purchased from a supplier. In each of the five situations, the shareholders immediately sold the properties back to the supplier. Thus the properties never left the possession of the supplier. Since the dividends were primarily motivated by tax avoidance, without any substantial business purpose and the properties distributed were immediately sold, as expected, under the influence of petitioner, held, the income…
1Opinion of the Court
Bush Brothers & Company, Petitioner v. Commissioner of Internal Revenue, Respondent
Bush Bros. & Co. v. Commissioner
Docket No. 808-76
United States Tax Court
73 T.C. 424; 1979 U.S. Tax Ct. LEXIS 8;
December 5, 1979, Filed
Decision will be entered for the respondent.
Petitioner is a family-owned corporation. During the period in question, petitioner distributed to its shareholders five dividends in kind, consisting of bills of sale to properties purchased from a supplier. In each of the five situations, the shareholders immediately sold the properties back to the supplier. Thus the properties never…
Also in this document: Concurrence; Dissent · Chabot; Dissent · Nims.
2Cases cited31 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. RutherfordSupreme Court of the United States · 1979
- Avery v. CommissionerSupreme Court of the United States · 1934
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