Roe v. Commissioner
United States Tax Court
1. Distribution by A Corporation to its sole stockholder, B Corporation, out of realized pre-1913 appreciation, which exceeded B Corporation's basis in A Corporation's stock held taxable when redistributed by Corporation B to its stockholders.
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1. Distribution by A Corporation to its sole stockholder, B Corporation, out of realized pre-1913 appreciation, which exceeded B Corporation's basis in A Corporation's stock held taxable when redistributed by Corporation B to its stockholders. Internal Revenue Code Section 115 (1). 2. Distributions to shareholders in 1943 and 1945, in which years the corporation had adequate net income to support such distribution, held taxable as dividends under section 115 (b), Internal Revenue Code, notwithstanding outstanding stockholders' "accounts payable" reflecting previously declared but unpaid…
1Opinion of the Court
OPINION.
Kern, Judge:
These proceedings were brought for a redetermination of deficiencies in income taxes, as follows:
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The only questions remaining for decision relate (1) to the tax-ability, by reason of section 115 (a), (b), and (1) of the Internal Revenue Code, of certain distributions received by all of the petitioners, except John L. Roe, Sr., from the Cummer Trust, and (2) to the taxability of dividends paid in 1943 and 1945 to some of the petitioners which dividends had been declared in 1926 by the Cummer Lime Co.
Substantially all of the facts are stipulated and, as…
2Cases cited3 opinions
- Lynch v. HornbySupreme Court of the United States · 1918
- Goldwyn v. CommissionerUnited States Tax Court · 1947
- Blauvelt v. CommissionerUnited States Tax Court · 1944
3Cited by3 opinions
- Roe v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- McKelvy v. United StatesUnited States Court of Claims · 1973
- Roe v. CommissionerUnited States Tax Court · 1950