Gamman v. Commissioner
United States Tax Court
Held, prorata advances by the two equal stockholders of a corporation far in excess of their contributions to the corporation for stock were placed at the risk of the business and had the characteristics of equity capital.
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Held, prorata advances by the two equal stockholders of a corporation far in excess of their contributions to the corporation for stock were placed at the risk of the business and had the characteristics of equity capital. Held, further, the notes issued by the corporation to the stockholders as evidence of their advances to the corporation did not constitute a second class of stock so as to disqualify the corporation as an electing "small business corporation" under subchapter S of the 1954 Code.
1Opinion of the Court
Hrennen, Judge;
Respondent determined deficiencies in petitioners’ income taxes and an addition to tax, as follows:
Docket No. Petitioner Year Deficiency Addition to tax, sec. 66512
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In Iris answer filed in docket ISTo. 5268-64 respondent claimed increased deficiencies for the years 1958 and 1962 in the amounts of $8,600.44 and $11,519.35, respectively. In his answer filed in docket ISTo. 5270-64 respondent claimed an increased deficiency in tax and addition to tax for the year 1961 in the amounts of $18,402.52 and $4,600.63, respectively.
All issues in all docket numbers have been…
2Cases cited15 opinions
- Pepper v. LittonSupreme Court of the United States · 1939
- Manhattan General Equipment Co. v. Commissioner of Internal RevenueSupreme Court of the United States · 1936
- Maryland Casualty Co. v. United StatesSupreme Court of the United States · 1920
- Benjamin D. And Madeline Prentice Gilbert v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1957
- Bazley v. CommissionerSupreme Court of the United States · 1947
10 more not listed; retrieve them via the Exa API.
3Cited by41 opinions
- Pollack v. CommissionerUnited States Tax Court · 1966
- Raynor v. CommissionerUnited States Tax Court · 1968
- Buhler Mortg. Co. v. CommissionerUnited States Tax Court · 1969
- Stinnett v. CommissionerUnited States Tax Court · 1970
- Hollenbeck v. CommissionerUnited States Tax Court · 1968
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