Golwynne v. Commissioner
United States Tax Court
From 1942 to 1945, inclusive, decedent, the president and sole stockholder of a corporation, received a part of his salary in notes of the corporation. On his income tax returns for such years, he reported the full amount of his salary, including the notes, as taxable income. In 1944 and 1946, a part of such notes was exchanged for preferred stock.
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From 1942 to 1945, inclusive, decedent, the president and sole stockholder of a corporation, received a part of his salary in notes of the corporation. On his income tax returns for such years, he reported the full amount of his salary, including the notes, as taxable income. In 1944 and 1946, a part of such notes was exchanged for preferred stock. In 1949, 75 shares of such stock were redeemed by the corporation for $ 7,500, and the distribution received by decedent was immediately applied against an overdraft in his drawing account in a like amount. At the time of redemption and…
1Opinion of the Court
OPINION.
Rice, Judge:
This proceeding involves a deficiency in income tax for the year 1949 in the amount of $4,820.81.
The only issue is whether the redemption of preferred stock which decedent owned was “at such time and in such manner” as to make it “essentially equivalent to the distribution of a taxable dividend” within the meaning of section 115 (g) of the 1939 Code. All other issues raised in the petition were conceded.
All of the facts were stipulated, are so found, and are incorporated herein by this reference.
Decedent was a resident of New York City during the year in issue. He filed…
2Cases cited3 opinions
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Keefe, Collector v. CoteCourt of Appeals for the First Circuit · 1954
- United States v. Supplee-Biddle Co.Supreme Court of the United States · 1924
3Cited by17 opinions
- Meyer v. CommissionerUnited States Tax Court · 1966
- Isidore Himmel and Estate of Lillian Himmel, Isidore Himmel v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1964
- Himmel v. CommissionerUnited States Tax Court · 1963
- Charles Swan and Josephine Swan v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1966
- Swan v. CommissionerUnited States Tax Court · 1964
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