Faitoute v. Commissioner
United States Board of Tax Appeals
1. Where a corporation advances money to its sole stockholder and charges him for the amount thereof, and it was at all times the intention of the corporation and its sole stockholder that the amounts advanced would be repaid, and such repayments were actually made, the moneys advanced were loans and not distributions of profits taxable as dividends. 2. On December 27, 1932, the petitioner sold at market price $100,000 par value of Asbury Park, New Jersey, bonds to a broker…
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1. Where a corporation advances money to its sole stockholder and charges him for the amount thereof, and it was at all times the intention of the corporation and its sole stockholder that the amounts advanced would be repaid, and such repayments were actually made, the moneys advanced were loans and not distributions of profits taxable as dividends. 2. On December 27, 1932, the petitioner sold at market price $100,000 par value of Asbury Park, New Jersey, bonds to a broker who in turn sold them to Faitoute Iron & Steel Co., all of the stock of which was owned by the petitioner. A large loss…
1Opinion of the Court
OPINION.
Smith:
This is a proceeding for the redetermination of a deficiency in income tax for 1932 in the amount of $60,083.53. The petition alleges that the respondent erred in the determination of the deficiency (1) in treating as taxable dividends $94,000 which represented money borrowed by the petitioner from the Faitoute Iron & Steel Co., of which the petitioner was the sole stockholder; (2) in disallowing the deduction from gross income of $42,537.50 sustained on the sale of $100,000 par value of City of Asbury Park, New Jersey, bonds; and (3) in disallowing the deduction of a capital…
2Cited by10 opinions
- Paul W. Berthold and Dorothy Berthold v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1968
- Leonard C. Jaques, Sybil J. Jaques v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1991
- Hudlow v. CommissionerUnited States Tax Court · 1971
- Ravano v. CommissionerUnited States Tax Court · 1967
- Thistlethwaite v. CommissionerUnited States Tax Court · 1966
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