Dietzsch v. Commissioner
United States Tax Court
Petitioner entered into an agreement with GM for the financing of a corporate dealership. GM held the voting stock and petitioner held solely nonvoting stock. Petitioner received cash dividends in the taxable years 1965, 1966, and 1967 which, pursuant to agreement, petitioner was required to apply to the purchase of GM's stock.
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Petitioner entered into an agreement with GM for the financing of a corporate dealership. GM held the voting stock and petitioner held solely nonvoting stock. Petitioner received cash dividends in the taxable years 1965, 1966, and 1967 which, pursuant to agreement, petitioner was required to apply to the purchase of GM's stock. Petitioner was further required to convert that stock into additional nonvoting stock until such time as petitioner acquired all of the outstanding stock, which thereupon became voting stock. In a proceeding before the Court of Claims with respect to the taxable years…
1Opinion of the Court
OPINION
Petitioner seeks to avoid the tax on certain distributions out of earnings and profits paid in cash by Dietzsch Pontiac-Cadillac during the taxable year 1967. In support of this position, petitioner relies on section 305. While the distributions in question were made in cash, petitioner contends that by reason of a preexisting agreement between petitioner and General Motors, whereby petitioner was obligated to apply any dividends to the purchase of class A stock from General Motors and to exchange such class A stock for class B stock of the distributing corporation, the distribution…
2Cases cited5 opinions
- Shiosaki v. CommissionerUnited States Tax Court · 1974
- Dean v. CommissionerUnited States Tax Court · 1971
- Hercules Powder Company v. The United StatesUnited States Court of Claims · 1964
- Richmond, F. & P. R. Co. v. CommissionerUnited States Tax Court · 1974
- Richmond, Fredericksburg and Potomac Railroad Company v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1975
3Cited by2 opinions
- Baker v. CommissionerUnited States Tax Court · 1983
- Dietzsch v. CommissionerUnited States Tax Court · 1976