Farrell v. Commissioner
United States Board of Tax Appeals
Petitioners owned stock in a corporation which had an earned surplus on March 1, 1913. Losses which occurred thereafter greater than undistributed earnings of years previous to such losses should be charged to and reduce such earned surplus, but not subsequent earnings. Earnings subsequent to losses so treated are the most recently accumulated earnings, and dividends paid to petitioners therefrom are taxable to them. Helvering v. Canfield,291 U.S. 163.
1Opinion of the Court
*630OPINION.
Seawell:
The record shows that the petitioners, Robert S. Farrell and G. A. Olson, as stockholders in the Deep River Logging Co., received on December 28, 1928, as distributions from the company, $25,750 and $18,750, respectively. It is contended by petitioner Farrell that the respondent erroneously added to his income for 1928, subject to surtax, $18,769.18, and petitioner Olson insists respondent *631likewise erroneously added to his taxable income for that year $13,666.87.
It is argued on behalf of the petitioners that no portion of the sums of $18,769.18 and $13,666.87 added to the 1928…
2Cases cited3 opinions
- Helvering v. CanfieldSupreme Court of the United States · 1934
- Stifel v. CommissionerUnited States Board of Tax Appeals · 1934
- Shorb v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by1 opinion
- Farrell v. CommissionerUnited States Board of Tax Appeals · 1934