Monk v. Commissioner
United States Board of Tax Appeals
Held, that dividends declared when certain corporations sold all their assets and discontinued business, and paid out of the selling price of such assets, were distributions in liquidation.
1Opinion of the Court
*559OPINION.
Lansdon:
The sole question here is whether the distributions of July 14, 1927, were ordinary or liquidating dividends. In conformity with options and contracts each company sold its assets to Stores on July 12, 1927, and on that date ceased business. On July 14 the purchasers made the cash payments provided for in the contracts of sales. On July 12 each company declared a dividend as set out above, payable as and when funds became available. On July 15 such dividends were paid in cash out of receipts from the sale of capital assets and in amounts which exceeded the alleged surplus of…
2Cases cited6 opinions
- Lynch v. HornbySupreme Court of the United States · 1918
- Hellmich v. HellmanSupreme Court of the United States · 1928
- Kohlsaat v. MurphySupreme Court of the United States · 1878
- Gossett v. CommissionerUnited States Board of Tax Appeals · 1931
- Greenwood v. CommissionerUnited States Board of Tax Appeals · 1925
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Fowler Hosiery Co. v. CommissionerUnited States Tax Court · 1961
- Fowler Hosiery Co. v. CommissionerUnited States Tax Court · 1961
- Monk v. CommissionerUnited States Board of Tax Appeals · 1933