Miller v. Commissioner
United States Tax Court
1. Dividend Income Taxable to Buyer or Seller of Stock. -- Agreement for the sale of stock provided that a dividend was to be declared which was to be applied on or reduce the purchase price of the stock.
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1. Dividend Income Taxable to Buyer or Seller of Stock. -- Agreement for the sale of stock provided that a dividend was to be declared which was to be applied on or reduce the purchase price of the stock. Agreement of sale was executed and dividend declared on the same day, made payable to owners of shares on the previous day (seller). Held, dividend taxable as ordinary income to seller, since he owned and controlled the shares at the time the dividend was declared, and the dividend was made payable to and paid to him. 2. Held, further, improperly taking deductions from gross income in…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The question here is whether the dividend declared on the stock of Tiny Tot Safety Table Company was the income of the seller or buyers of the company’s stock. The agreement for the sale of stock was dated July 29,1950; the dividend was declared the same day, made payable on August 4,1950, out of the earned surplus of the corporation, to the shareholders of record on July 28,1950. The dividend checks were dated August 7,1950.
On behalf of the seller, petitioner C. W. Miller, it is urged that the dividend should be included in the buyers’ gross income because they were…
2Cases cited5 opinions
- Moore v. CommissionerCourt of Appeals for the Seventh Circuit · 1941
- De Guire v. HigginsCourt of Appeals for the Second Circuit · 1947
- Gilmore v. CommissionerUnited States Tax Court · 1956
- Northern Trust Co. Of Chicago v. United StatesCourt of Appeals for the Seventh Circuit · 1952
- Hobson v. CommissionerUnited States Tax Court · 1951
3Cited by10 opinions
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- 2 Lexington Ave. Corp. v. CommissionerUnited States Tax Court · 1956
- Reitz v. CommissionerUnited States Tax Court · 1974
- Miller v. CommissionerCourt of Appeals for the Seventh Circuit · 1957
- Uniroyal, Inc. v. CommissionerUnited States Tax Court · 1993
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