Overton v. Commissioner
United States Tax Court
Husbands holding corporate common stock caused reissuance thereof in two classes equal in amount. One class they conveyed 15 days later to their wives, pursuant to a plan adopted prior to the reissuance of stock. The stock received by the wives had voting power only in limited situations provided by law, and had a value of only $ 1 a share on dissolution. Dividends were payable thereon, after certain dividends to the husbands, only in the husbands' discretion.
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Husbands holding corporate common stock caused reissuance thereof in two classes equal in amount. One class they conveyed 15 days later to their wives, pursuant to a plan adopted prior to the reissuance of stock. The stock received by the wives had voting power only in limited situations provided by law, and had a value of only $ 1 a share on dissolution. Dividends were payable thereon, after certain dividends to the husbands, only in the husbands' discretion. Later, an agreement was made restricting alienation of the stock held by wives and requiring an offer thereof to the other…
1Opinion of the Court
OPINION.
Disney, Judge:
The chief questions are whether petitioner Overton lis liable in 1936 and 1937 for gift taxes and petitioner Oliphant in 11941 for income tax on dividends paid in those years to their respective ¡wives on class B stock of the corporation.
The petitioners admit that the reclassification of stock of the corporation, the replacement of preferred stock by debenture bonds carrying the same rate of interest as the dividends paid on the replaced stock, and the transfers by stockholders to their wives of class B stock received, with class A stock, in exchange for old common…
2Cases cited7 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Griffiths v. CommissionerSupreme Court of the United States · 1939
2 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Overton v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1947
- Community TV Association of Havre v. United StatesDistrict Court, D. Montana · 1962
- Chambers v. CommissionerUnited States Tax Court · 1986
- Alexander v. CommissionerUnited States Tax Court · 1946
13 more not listed; retrieve them via the Exa API.