Dobson v. Commissioner
United States Board of Tax Appeals
Distributions made in 1917 by a corporation in liquidation are within the provisions of section 31(b) of the Revenue Act of 1916 (added by section 1211 of the Revenue Act of 1917), and to the extent that they are paid out of profits accumulated after March 1, 1913, are taxable as dividends.
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Distributions made in 1917 by a corporation in liquidation are within the provisions of section 31(b) of the Revenue Act of 1916 (added by section 1211 of the Revenue Act of 1917), and to the extent that they are paid out of profits accumulated after March 1, 1913, are taxable as dividends. Where all profits were so distributed in 1917, any further distribution in 1918 must have been out of capital and is not taxable under section 201(c) of the Revenue Act of 1918. Taxpayer bought stock at par, and later, when the corporation went into receivership, offered it for sale at auction but bought…
1Opinion of the Court
*1084OPINION.
Ivins :
This appeal involves three adjustments made by the Commissioner in auditing the taxpayer’s income-tax returns, two of which are in issue. The Commissioner concedes error as to the third, it being due to a mistake in computation.
1. The first point in controversy is the proper treatment of $24,855 received by the taxpayer in 1918 as a stockholder of Harrison Brothers & Co., Inc., then in liquidation. He originally paid $98.1016 per share for his stock. Between March 1, 1913, and the liquidation, the corporation accumulated earnings constituting a surplus of $101.95 per share. The…
2Cases cited4 opinions
- Lynch v. HornbySupreme Court of the United States · 1918
- Lynch v. TurrishSupreme Court of the United States · 1918
- Lynch v. TurrishCourt of Appeals for the Eighth Circuit · 1916
- Lynch v. HornbyCourt of Appeals for the Eighth Circuit · 1916
3Cited by9 opinions
- Berliner v. District of ColumbiaCourt of Appeals for the D.C. Circuit · 1958
- The St. Louis Company, a Delaware Corporation (In Dissolution) v. The United States of AmericaCourt of Appeals for the Third Circuit · 1956
- Callan v. Comm'rUnited States Tax Court · 1970
- A. B. Nickey & Sons v. CommissionerUnited States Board of Tax Appeals · 1925
- Callan v. Comm'rUnited States Tax Court · 1970
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