Zager v. Commissioner
United States Tax Court
Held: The dominant stockholders (who were also officers and employees) of a corporation did not realize taxable income by reason of interest-free loans to them by the corporation. Dean v. Commissioner, 35 T.C. 1083 (1961), followed. The principle of stare decisis is applicable in the light of the history of this issue.
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies in income tax against petitioners, husband and wife, in the amounts of $6,179.75 and $6,627.18, for the calendar years 1975 and 1976, respectively. After concessions by petitioners as to certain adjustments made by the Commissioner, there remains in controversy only whether petitioners realized taxable income in respect of their interest-free use of funds borrowed from a corporation in which they were the dominant stockholders. The case was submitted on the basis of a stipulation of facts.
Petitioners, residents of North Miami Beach,…
2Cases cited11 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Helvering v. HallockSupreme Court of the United States · 1940
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- Dixon v. United StatesSupreme Court of the United States · 1965
6 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- La Fargue v. CommissionerUnited States Tax Court · 1979
- United States v. Jack E. White, United States of America v. Gene KuykendallCourt of Appeals for the Eighth Circuit · 1982
- Commissioner of Internal Revenue v. Herman M. Greenspun and Barbara J. GreenspunCourt of Appeals for the Ninth Circuit · 1982
- Proctor v. CommissionerUnited States Tax Court · 1981
- Jack and Florence Baker v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1982
12 more not listed; retrieve them via the Exa API.