Charles Rubens & Co. v. Commissioner
United States Board of Tax Appeals
1. Upon the organization of a corporation, it issued stock for the tangible property of a preceding business to its owner. The intangible property was expressly transferred separately.
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1. Upon the organization of a corporation, it issued stock for the tangible property of a preceding business to its owner. The intangible property was expressly transferred separately. Held, that the intangible property may not be included in invested capital and no apportionment may be made as in St. Louis Screw Co.,2 B.T.A. 649. 2. The distribution in prewar years of an amount to stockholders in proportion to stockholdings, although not expressly declared as a dividend, may upon proper evidence be treated as such rather than as an expense and will not reduce prewar income in determining…
1Opinion of the Court
CHARLES RUBENS & CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Charles Rubens & Co. v. Commissioner
Docket Nos. 5736, 6356, 12569.
United States Board of Tax Appeals
6 B.T.A. 626; 1927 BTA LEXIS 3463;
March 26, 1927, Promulgated
1. Upon the organization of a corporation, it issued stock for the tangible property of a preceding business to its owner. The intangible property was expressly transferred separately. Held, that the intangible property may not be included in invested capital and no apportionment may be made as in St. Louis Screw Co.,2 B.T.A. 649.
2. The distribution in…
2Cases cited2 opinions
- St. Louis Screw Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Charles Rubens & Co. v. CommissionerUnited States Board of Tax Appeals · 1927