Gilbert v. Commissioner
United States Tax Court
Petitioner husband was the sole shareholder of corporation A and a 50-percent stockholder of B. A borrowed $ 20,000 and transferred that sum to B to enable B to redeem the remaining 50 percent of B's shares owned by petitioner husband's brother. Held, the transfer did not constitute a loan from A to B. Held, further, the transfer constituted a constructive dividend from A to petitioner husband.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined a deficiency in petitioners’ income tax for the year 1975 in the amount of $7,483. The issue for decision is whether a transfer of $20,000 by Jetrol, Inc., to G&H Realty Corp. constituted a constructive dividend to petitioner Gilbert L. Gilbert, the common shareholder of each corporation.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and exhibits are incorporated herein by this reference.
Petitioners Gilbert L. Gilbert (Gilbert) and Flossie Gilbert resided in West Henrietta, N.Y., at the time they filed the petition…
2Cases cited23 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Jasionowski v. CommissionerUnited States Tax Court · 1976
- Rushing v. CommissionerUnited States Tax Court · 1969
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Alterman Foods, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1975
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3Cited by32 opinions
- Yelencsics v. CommissionerUnited States Tax Court · 1980
- Kean v. CommissionerUnited States Tax Court · 1988
- Jonathan B. Geftman v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1998
- Morowitz v. United StatesUnited States Court of Claims · 1988
- Schering-Plough Corp. v. United StatesDistrict Court, D. New Jersey · 2009
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