Trego County Cooperative Asso. v. Commissioner
United States Board of Tax Appeals
Fixed dividends paid by a cooperative corporation are not deductible by the corporation.
1Opinion of the Court
*1279OPINION.
MoRRis:
The respondent in his answer admits that the proportion of the patronage dividends paid to stockholders during the fiscal year 1919 computed on the following basis is an allowable deduction for that year:
First compute the apparent net income of the corporation. From this amount deduct the fixed dividend paid or payable on any outstanding capital stock. The amount of such fixed dividend is the portion of net income properly attributable to the investment made in the corporation by the holders of any outstanding capital stock. The balance consists of (1) the amount available for…
2Cited by10 opinions
- Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
- Union Equity Cooperative Exchange v. CommissionerUnited States Tax Court · 1972
- Associated Grocers of Alabama, Inc. v. WillinghamDistrict Court, N.D. Alabama · 1948
- FCX, Inc. v. United StatesUnited States Court of Claims · 1976
- Peoples Gin Co. v. CommissionerUnited States Tax Court · 1943
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