Lewis v. Commissioner
United States Tax Court
1. Held, estate of majority stockholder of closely held family corporation deemed to own all of corporation's stock upon application of constructive ownership rules of section 318, I.R.C. 1954. 2. Held, further, redemption of portion of estate's stock in cancellation of decedent stockholder's indebtedness was a redemption essentially equivalent to a dividend under section 302, I.R.C. 1954.
1Opinion of the Court
OPINION.
Rattm, Judge:
Over a period of years, beginning prior to 1943 and continuing until her death in 1954, Eva L. Beyer owned 156 shares out of a total of 283 shares of stock of Beyer & Fortner, Inc. The remaining shares were owned by her three daughters or their husbands in unequal amounts. She was president of the corporation, but ceased taking salary in 1943 by reason of a temporary decline in the corporate business due to the war. Her poor health prevented her from playing any active part in the enterprise after 1947, and she never did receive any salary from 1943 until her death. Her…
2Cases cited4 opinions
- Boyle v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
- Elizabeth N. B. Ferro v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1957
- Heman v. CommissionerUnited States Tax Court · 1959
- Kessner v. CommissionerUnited States Tax Court · 1956
3Cited by52 opinions
- Foxman v. CommissionerUnited States Tax Court · 1964
- Eva D. Bradbury v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1962
- Metzger Trust v. CommissionerUnited States Tax Court · 1981
- Meyer v. CommissionerUnited States Tax Court · 1966
- Pleasanton Gravel Co. v. CommissionerUnited States Tax Court · 1975
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