Legal Opinion

Taplin v. Commissioner

United States Board of Tax Appeals

Decided July 11, 1928No. Docket Nos. 13254, 21264, 21263PublishedCited by 3 opinions

A purported sale by a corporation to its majority stockholders of stock at less than one-fourth of its market value, held not to have been a bona fide sale, but rather a distribution of profits.

1Opinion of the Court

*1267OPINION.

Littleton:

With the exception of the statute of limitations issue raised in the appeal of Frank E. Taplin, Docket No. 13254, there are only two questions presented in these proceedings, namely: (1) Whether or not the purchase by these petitioners on October 30, 1920, *1268from the Cleveland Company of 5,400 shares of 'the stock of the Standard Company resulted in the receipt by them of a dividend and taxable income; and (2) whether or not the fair market value of the stock of the Standard Company on October 30, 1920, was less than $30 per share, the value thereof as determined by the…

2Cases cited1 opinion

  1. The People v. . the Albany Insurance Co.New York Court of Appeals · 1883

3Cited by3 opinions

  1. E. K. Wood Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1932
  2. Taplin v. CommissionerUnited States Board of Tax Appeals · 1928
  3. Van Vorst v. CommissionerUnited States Board of Tax Appeals · 1931

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