Home Guaranty Abstract Co. v. Commissioner
United States Tax Court
Petitioner, an abstract company, was incorporated in 1902, and $ 15,000 was paid in for stock. About $ 20,000 was expended, up to 1914, upon records. In 1920 an amendment to charter was filed, raising stock to $ 40,000, based upon a $ 25,000 increase in value of assets.
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Petitioner, an abstract company, was incorporated in 1902, and $ 15,000 was paid in for stock. About $ 20,000 was expended, up to 1914, upon records. In 1920 an amendment to charter was filed, raising stock to $ 40,000, based upon a $ 25,000 increase in value of assets. Offer to sell for $ 25,000 cash and $ 25,000 stock in a new company to be formed, was made in 1921. In 1944 the stock was sold for $ 60,000. The corporation paid dues to clubs for its officers, and from one club definite business was acquired. The purpose of the officers in joining the clubs was not shown. The petitioner filed…
1Opinion of the Court
OPINION.
Disney, Judge:
Under the above facts, it is the petitioner’s contention that its equity invested capital (for the purpose of determining the excess profits taxes herein involved) was on January 1, 1942, $44,776.89, representing $40,000 capital stock and $4,776.89 earnings and profits accumulated on that date; and that on January 1,1943, the figure was $46,785.50, representing accumulated earnings and profits of $6,785.50 and the $40,000 capital stock.
In the alternative, petitioner contends the equity invested capital for 1942 was not less than $32,876.89, and for 1943, $33,885.50,…
2Cases cited2 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- P. Dougherty Co. v. CommissionerUnited States Tax Court · 1945
3Cited by24 opinions
- Logan Lumber Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Sutter v. CommissionerUnited States Tax Court · 1953
- Robinson's Dairy, Inc. v. CommissionerUnited States Tax Court · 1961
- Sanders v. CommissionerUnited States Tax Court · 1954
- Genesee Valley Gas Co. v. CommissionerUnited States Tax Court · 1948
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