Stolz v. Commissioner
United States Tax Court
The petitioner and another agreed to obtain an automobile dealership franchise and operate in the form of a corporation. They subscribed equally for the common stock, but the other person furnished all the remainder of the capital and received all the preferred stock. At the insistence of the automobile manufacturer the petitioner purchased from the other person one-half of the outstanding preferred stock.
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The petitioner and another agreed to obtain an automobile dealership franchise and operate in the form of a corporation. They subscribed equally for the common stock, but the other person furnished all the remainder of the capital and received all the preferred stock. At the insistence of the automobile manufacturer the petitioner purchased from the other person one-half of the outstanding preferred stock. Payment was to be made only out of dividends or other distributions on this and the other stock of the petitioner. After the corporation had accumulated large earnings it redeemed all the…
1Opinion of the Court
Atkins, Judge:
The respondent determined deficiencies in income tax against the petitioners for the taxable year 1950, with respect to E. H. Stolz in the amount of $1,955.15, and with respect to Zoe Stolz in the amount of $2,042.63.
The sole issue is whether the redemption of preferred stock was essentially equivalent to the distribution of a taxable dividend.
FINDINGS OP PACT.
Some of tlie facts are stipulated and are incorporated herein by this reference.
The petitioners are husband and wife residing in Grand Prairie, Texas. Each filed a separate individual income tax return for the calendar…
2Cases cited8 opinions
- Commissioner v. Estate of BedfordSupreme Court of the United States · 1945
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- United States v. John H. FewellCourt of Appeals for the Fifth Circuit · 1958
- Kirschenbaum v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1946
- Hugh H. Earle, Former Collector of Internal Revenue v. Angela MacEvoy WoodlawCourt of Appeals for the Ninth Circuit · 1957
3 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Charles P. Ballenger, Jr., and Myrtle S. Ballenger v. United StatesCourt of Appeals for the Fourth Circuit · 1962
- Grubbs v. CommissionerUnited States Tax Court · 1962
- Gooding v. United StatesUnited States Court of Claims · 1964
- E. H. Stolz and Zoe Stolz v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- F. E. Gooding v. The United States. Elizabeth Gooding v. The United StatesUnited States Court of Claims · 1964
4 more not listed; retrieve them via the Exa API.