Dellinger v. Commissioner
United States Tax Court
Petitioner, in the taxable year 1954, purchased three vacant lots from a corporation, in which he held a one-third stock interest, at prices representing cost or less to said corporation.
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Petitioner, in the taxable year 1954, purchased three vacant lots from a corporation, in which he held a one-third stock interest, at prices representing cost or less to said corporation. The corporation was engaged in selling lots in a new land development to the public at large and commenced business in April 1953. The lowest price which the corporation has accepted for any lots in the subdivision, other than from a shareholder, was $ 1,800. One of the lots which petitioner purchased as an investment for $ 250 (below cost to the corporation) was sold 7 months later for $ 2,445. Each time a…
1Opinion of the Court
FisheR, Judge:
Respondent determined a deficiency in income tax against petitioners for the taxable year 1954 in the amount of $1,344.35.
The principal issues presented for our decision herein are (1) whether petitioner, in the taxable year 1954, acquired three lots from Lake Forest, Inc., a corporation in which he was a stockholder, at bargain prices so as to render the excess of the fair market value over the price paid taxable to him as a dividend under section 301, Code of 1954; and (2) if so, whether, and to what extent, if any, earnings and profits available for distribution as dividends…
2Cases cited14 opinions
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Palmer v. CommissionerSupreme Court of the United States · 1937
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- Lincoln Nat. Bank v. BurnetCourt of Appeals for the D.C. Circuit · 1933
- Commissioner of Internal Revenue v. Van VorstCourt of Appeals for the Ninth Circuit · 1932
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3Cited by36 opinions
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- Boulware v. United StatesSupreme Court of the United States · 2008
- Epstein v. CommissionerUnited States Tax Court · 1969
- Brittingham v. CommissionerUnited States Tax Court · 1976
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