Southwest Hardware Co. v. Commissioner
United States Tax Court
Petitioner, organized in 1912 under the general corporation law of California, always has carried on its business as a co-operative wholesale dealer in hardware selling only to its stockholder-members who own equal amounts of stock. No dividends have ever been paid on petitioner's stock.
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Petitioner, organized in 1912 under the general corporation law of California, always has carried on its business as a co-operative wholesale dealer in hardware selling only to its stockholder-members who own equal amounts of stock. No dividends have ever been paid on petitioner's stock. It was understood and agreed between petitioner and each prospective stockholder at the time stock was purchased that all of petitioner's annual net earnings would be distributed to the stockholder-members in proportion to the purchases of each. In each year, patronage refunds were paid to the members in…
1Opinion of the Court
Southwest Hardware Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Southwest Hardware Co. v. Commissioner
Docket No. 44927
United States Tax Court
24 T.C. 75; 1955 U.S. Tax Ct. LEXIS 202;
April 26, 1955, Filed
Decision will be entered for the petitioner.
Petitioner, organized in 1912 under the general corporation law of California, always has carried on its business as a co-operative wholesale dealer in hardware selling only to its stockholder-members who own equal amounts of stock. No dividends have ever been paid on petitioner's stock. It was understood and agreed between…
2Cases cited4 opinions
- Colony Farms Cooperative Dairy, Inc. v. CommissionerUnited States Tax Court · 1951
- Southwest Hardware Co. v. CommissionerUnited States Tax Court · 1955
- American Box Shook Export Ass'n v. Commissioner of IRCourt of Appeals for the Ninth Circuit · 1946
- American Box Shook Export Asso. v. CommissionerUnited States Tax Court · 1945