Aldrich v. Commissioner
United States Tax Court
The three taxpayers inherited all the shares of an insolvent corporation and a claim against it. Dissolution was then considered. They authorized the corporation to transfer the assets to them as creditors. This was done and the corporation dissolved. Held, the amount received by the taxpayers is not a liquidating distribution, of which only a percentage would be taxable, but the gain is ordinary income, of which all is taxable.
1Opinion of the Court
Harriet Aldrich, Petitioner, v. Commissioner of Internal Revenue, Respondent. Mary Whitehouse, Petitioner, v. Commissioner of Internal Revenue, Respondent. Janetta Whitridge, Petitioner, v. Commissioner of Internal Revenue, Respondent
Aldrich v. Commissioner
Docket Nos. 108776, 108777, 108778
United States Tax Court
1 T.C. 602; 1943 U.S. Tax Ct. LEXIS 232;
February 18, 1943, Promulgated
Decision will be entered for the respondent.
The three taxpayers inherited all the shares of an insolvent corporation and a claim against it. Dissolution was then considered. They authorized the corporation to…
2Cases cited1 opinion
- Aldrich v. CommissionerUnited States Tax Court · 1943