Reynolds v. Comm'r
United States Board of Tax Appeals
1. Sums of money received by petitioner from R corporation were loans and not taxable dividends. 2. Where petitioner transferred certain stock to R corporation for the same consideration at which he had repurchased it from employees of R corporation, together with contracts of sales of stock to employees upon which balances were still owing, and was credited with the consideration for the stock and the unpaid balances on the stock sale contracts, the transaction was not a…
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1. Sums of money received by petitioner from R corporation were loans and not taxable dividends. 2. Where petitioner transferred certain stock to R corporation for the same consideration at which he had repurchased it from employees of R corporation, together with contracts of sales of stock to employees upon which balances were still owing, and was credited with the consideration for the stock and the unpaid balances on the stock sale contracts, the transaction was not a distribution having the effect of a taxable dividend under section 115(g) of the Revenue Act of 1934. 3. The petitioner…
1Opinion of the Court
*350OPINION.
Leech:
The following table gives effect to the corrections in the computation of the deficiencies in the deficiency notices which respondent concedes:
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The first issue is whether the sums withdrawn by petitioner from R. C. Reynolds, Inc., in 1934,1935, and 1936 were loans or dividends.
Withdrawals by petitioner during 1930 to 1933, inclusive, are treated by respondent as loans, while he seeks to characterize those occurring during the three following years as dividends.
The evidence reveals no reasonable basis for these opposite positions. It is obvious, however, that he is…
2Cases cited2 opinions
- Lewis v. . MottNew York Court of Appeals · 1867
- Shepard v. . City of New YorkNew York Court of Appeals · 1915
3Cited by12 opinions
- M. O. Rife and Maidee W. Rife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Peterson v. CommissionerUnited States Tax Court · 1964
- Frank W. Sharp v. CommissionerUnited States Tax Court · 1953
- Cruser v. CommissionerUnited States Tax Court · 1961
- Estate of Richards v. CommissionerUnited States Tax Court · 1944
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