Grubbs v. Commissioner
United States Tax Court
Petitioner held stock in a California corporation operating a Ford dealership which had accumulated earnings but had never declared a dividend. Another stockholder, who had operated, as sole proprietor, a supervisory service for dealers, transferred this business to a new corporation, organized in Tennessee, for class A stock.
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Petitioner held stock in a California corporation operating a Ford dealership which had accumulated earnings but had never declared a dividend. Another stockholder, who had operated, as sole proprietor, a supervisory service for dealers, transferred this business to a new corporation, organized in Tennessee, for class A stock. The assets and franchise of the dealership were transferred to the new corporation for cash, which was distributed by the old corporation to all its stockholders (except one) for their stock and all the stockholders acquired class B stock in the new corporation. After…
1Opinion of the Court
Beiice, Judge:
The respondent determined a deficiency in income tax of $29,501.10 for the calendar year 1957. The sole issue for decision is whether part of a distribution made in 1957 to David T. Grubbs is taxable as ordinary income rather than capital gain. Some facts are stipulated.
FINDINGS OF FACT.
The stipulation of facts and exhibits filed therewith are incorpo rated by tins reference.
The petitioners, husband and wife, resided in Van Nuys, California, in the taxable year. They filed a joint Federal income tax return for 1957 with the director of internal revenue at Los Angeles. For…
2Cases cited13 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Hellmich v. HellmanSupreme Court of the United States · 1928
- United States v. John H. FewellCourt of Appeals for the Fifth Circuit · 1958
- Survaunt v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1947
- William Liddon v. Commissioner of Internal Revenue, Maria Prothro Liddon v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
8 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- James Armour, Inc. v. CommissionerUnited States Tax Court · 1964
- Gallagher v. CommissionerUnited States Tax Court · 1962
- American Mfg. Co. v. CommissionerUnited States Tax Court · 1970
- Moffatt v. CommissionerUnited States Tax Court · 1964
- Abegg v. CommissionerUnited States Tax Court · 1968
19 more not listed; retrieve them via the Exa API.