Court Holding Co. v. Commissioner
United States Tax Court
The petitioner is a corporation of two stockholders, husband and wife. The husband, who largely looked after the business, acting for the corporation, orally agreed to sell the corporate property, upon specified terms, and $ 1,000 was received on the purchase price. At a meeting between the parties for execution of formal contract of sale, the stockholders were informed that a sale by the corporation would cause imposition of heavy income taxes.
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The petitioner is a corporation of two stockholders, husband and wife. The husband, who largely looked after the business, acting for the corporation, orally agreed to sell the corporate property, upon specified terms, and $ 1,000 was received on the purchase price. At a meeting between the parties for execution of formal contract of sale, the stockholders were informed that a sale by the corporation would cause imposition of heavy income taxes. They refused to sell, but immediately caused the corporation to distribute the property in kind to them as a liquidation dividend, and they then…
1Opinion of the Court
OPINION.
Disney, Judge:
We consider first the question whether the petitioner is entitled to a deduction from gross income for 1939 for the $350 paid to Regina Feiwish and designated by the petitioner as rent discount. The grounds upon which the deduction was disallowed are not stated in the deficiency notice, and the respondent’s brief contains no argument on this issue. In our opinion the amount in question constituted interest paid on an indebtedness of the petitioner, and is deductible. It is true that the promissory notes representing the Fei-wish loan were made by Louis Miller,…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- United States v. IshamSupreme Court of the United States · 1873
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
9 more not listed; retrieve them via the Exa API.
3Cited by65 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Sandor v. CommissionerUnited States Tax Court · 1974
- G. Douglas Burck and Marjorie W. Burck v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Bernard Resnik and Beverly Resnik v. Commissioner of the Internal Revenue ServiceCourt of Appeals for the Seventh Circuit · 1977
- Resnik v. CommissionerUnited States Tax Court · 1976
60 more not listed; retrieve them via the Exa API.