Peck v. Commissioner
United States Board of Tax Appeals
1. Where stock is loaned in exchange for the promises of borrower (1) to pay the lender any dividends paid thereon during the loan, or the equivalent if the stock were sold, and (2) to return upon a date certain, or before, on notice, the same or an equal number of shares of the same stock, held, such dividends are legally includable in lender's income for the year in which paid to borrower, although not actually received by lender who is on a cash basis. 2. Held, further,…
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1. Where stock is loaned in exchange for the promises of borrower (1) to pay the lender any dividends paid thereon during the loan, or the equivalent if the stock were sold, and (2) to return upon a date certain, or before, on notice, the same or an equal number of shares of the same stock, held, such dividends are legally includable in lender's income for the year in which paid to borrower, although not actually received by lender who is on a cash basis. 2. Held, further, sale of such stock by borrower results in no taxable gain to lender.
1Opinion of the Court
*90OPINION.
Leech :
The propriety of including the dividends and a part of the proceeds of the sale of the Woolworth stock, as gain thereon, in the income of petitioners’ decedent, and petitioners, for 1928, rests upon the relationship between petitioners’ decedent and the Times, existing, by virtue of the written agreements appearing in the findings of fact, at the receipt of these funds by the Times. Although these two agreements are not identically worded, we have no hesitation in concluding, as apparently the parties here concluded, that their meaning and intent was the same.
Whether the…
2Cases cited3 opinions
- Maryland Casualty Co. v. United StatesSupreme Court of the United States · 1920
- Provost v. United StatesSupreme Court of the United States · 1926
- Lansill v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by9 opinions
- Lazarus v. CommissionerUnited States Tax Court · 1972
- Heminway v. CommissionerUnited States Tax Court · 1965
- Kell v. CommissionerUnited States Board of Tax Appeals · 1934
- Corporate Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Heminway v. CommissionerUnited States Tax Court · 1965
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