Le Bus v. Commissioner
United States Board of Tax Appeals
A liquidating dividend is income to the stockholder, irrespective of the fact that the corporation may have outstanding obligations.
1Opinion of the Court
*734OPINION.
James:
The sole question presented in this appeal is whether under section 561 of the statutes of Kentucky, the taxpayer was in receipt of income on account of the dissolution dividend received by him in 1919, or was in receipt of that income only when the affairs of the corporation were finally wound up in 1923 by final payment of the corporation’s liability on account of income and profits taxes.
The material provision of section 561 reads as follows:
* * * all debts and demands against the corporation shall be paid in full before the officers receive anything.
It is contended on behalf…
2Cases cited2 opinions
- Janeway v. BurnAppellate Division of the Supreme Court of the State of New York · 1904
- J. F. Tapley Co. v. KellerAppellate Division of the Supreme Court of the State of New York · 1909
3Cited by3 opinions
- Barker v. CommissionerUnited States Board of Tax Appeals · 1926
- Le Bus v. CommissionerUnited States Board of Tax Appeals · 1925
- Minnesota Tea Co. v. CommissionerUnited States Board of Tax Appeals · 1936