Kraus Trust v. Commissioner
United States Tax Court
A corporation in which petitioners owned 50 percent of the 3,000 shares of outstanding stock made distributions in 1940 of $ 50 per share on stock having $ 50 par value. The business of the corporation was making school slates. For several years surplus funds not needed in the business were invested in securities. In 1940 the securities were sold and the proceeds distributed to the stockholders.
Read the full summary
A corporation in which petitioners owned 50 percent of the 3,000 shares of outstanding stock made distributions in 1940 of $ 50 per share on stock having $ 50 par value. The business of the corporation was making school slates. For several years surplus funds not needed in the business were invested in securities. In 1940 the securities were sold and the proceeds distributed to the stockholders. The distribution did not serve any business need of the corporation but was made for the benefit of trusts owning stock. No plan of liquidation of the corporation had been adopted. The corporation was…
1Opinion of the Court
Edward L. Kraus, Jr., Trust, Lehigh Valley Trust Company, Trustee, Petitioner, et al., 1 v. Commissioner of Internal Revenue, Respondent
Kraus Trust v. Commissioner
Docket Nos. 4481, 4500, 4501, 4502, 4503, 4541
United States Tax Court
6 T.C. 105; 1946 U.S. Tax Ct. LEXIS 310;
January 24, 1946, Promulgated
Decisions will be entered under Rule 50 in Docket Nos. 4481 and 4541. Decisions will be entered for the respondent in Docket Nos. 4500, 4501, 4502, and 4503.
A corporation in which petitioners owned 50 percent of the 3,000 shares of outstanding stock made distributions in 1940 of $ 50 per share on…
2Cases cited7 opinions
- Hellmich v. HellmanSupreme Court of the United States · 1928
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
- Bazley v. CommissionerUnited States Tax Court · 1945
- Long v. CommissionerUnited States Tax Court · 1945
- Mason v. CommissionerUnited States Tax Court · 1944
2 more not listed; retrieve them via the Exa API.