Waterman S.S. Corp. v. Commissioner
United States Tax Court
Petitioner's predecessor received an offer by an individual to have his corporate nominee purchase the stock of two of its subsidiaries for $ 3,500,000 cash.
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Petitioner's predecessor received an offer by an individual to have his corporate nominee purchase the stock of two of its subsidiaries for $ 3,500,000 cash. Because one of these subsidiaries had accumulated earnings and profits of approximately $ 2,800,000 invested in assets but the basis of the stock of the subsidiaries to petitioner's predecessor was only approximately $ 700,000, petitioner's predecessor refused the offer as made, but made a counteroffer to sell the stock for approximately $ 700,000 after having declared a dividend to itself of approximately $ 2,800,000, provided the…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency in petitioner’s income tax for the taxable period January 1, 1955, through May 5, 1955, in the amount of $196,744.93.
Some of the issues raised by the pleadings hare been disposed of by agreement of the parties leaving for our decision whether the distribution of a promissory note by Pan-Atlantic Steamship Corp. in the principal sum of $2,799,820 to Waterman Steamship Corp. was a dividend or part of the purchase price for the sale by Waterman Steamship Corp. of the stock of Pan-Atlantic Steamship Corp. and Gulf Florida Terminal Co., Inc., to…
2Cases cited11 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. TowerSupreme Court of the United States · 1946
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- The Steel Improvement and Forge Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
6 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Waterman Steamship Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1970
- Owens v. CommissionerUnited States Tax Court · 1975
- J. E. Casner and Una Casner v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Monson v. CommissionerUnited States Tax Court · 1982
- Reitz v. CommissionerUnited States Tax Court · 1974
17 more not listed; retrieve them via the Exa API.