Kinnear v. Commissioner
United States Board of Tax Appeals
1. Prior to and during the taxable year petitioner and another individual, as sole and equal stockholders, withdrew large sums of money from the corporation, which were entered in the corporate books as accounts receivable but for which no evidence of indebtedness was given. No interest was charged on the withdrawals and no proof was made that any part of the amounts was ever repaid.
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1. Prior to and during the taxable year petitioner and another individual, as sole and equal stockholders, withdrew large sums of money from the corporation, which were entered in the corporate books as accounts receivable but for which no evidence of indebtedness was given. No interest was charged on the withdrawals and no proof was made that any part of the amounts was ever repaid. Held, that the amounts withdrawn by the petitioner were received as distributions and not as loans. 2. Held, that impairments of paid-in surplus on March 1, 1913, by operating losses must be restored before there…
1Opinion of the Court
ROY J. KINNEAR, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Kinnear v. Commissioner
Docket No. 80103.
United States Board of Tax Appeals
36 B.T.A. 153; 1937 BTA LEXIS 767;
June 16, 1937, Promulgated
1. Prior to and during the taxable year petitioner and another individual, as sole and equal stockholders, withdrew large sums of money from the corporation, which were entered in the corporate books as accounts receivable but for which no evidence of indebtedness was given. No interest was charged on the withdrawals and no proof was made that any part of the amounts was ever repaid.…
2Cases cited12 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Willcuts v. Milton Dairy Co.Supreme Court of the United States · 1927
- Cornell Steamboat Company v. John J. Coughlin and J. C. Davis, Director General of Railroads, EtcSupreme Court of the United States · 1927
- Stifel v. CommissionerUnited States Board of Tax Appeals · 1934
- Shorb v. CommissionerUnited States Board of Tax Appeals · 1931
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