Christensen v. Commissioner
United States Tax Court
Petitioner acquired beneficial ownership of all the outstanding shares of a corporation on November 30, 1953. Thereafter, in pursuance of the terms of the agreement under which he purchased the stock, petitioner caused the corporation (a) to surrender a life insurance policy for cash and to forward the proceeds to the sellers and (b) to cancel the debt of a prior shareholder.
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Petitioner acquired beneficial ownership of all the outstanding shares of a corporation on November 30, 1953. Thereafter, in pursuance of the terms of the agreement under which he purchased the stock, petitioner caused the corporation (a) to surrender a life insurance policy for cash and to forward the proceeds to the sellers and (b) to cancel the debt of a prior shareholder. Held, that forwarding the insurance proceeds and canceling the debt were integral elements of the consideration for which the sellers parted with their shares, and that petitioner received dividends taxable under the…
1Opinion of the Court
OPINION.
Fisher, Judge:
Eespondent determined a deficiency in income tax against petitioners for the taxable year 1953 in the amount of $1,324.09.
The sole issue presented for determination herein is whether petitioners received a taxable dividend when a corporation canceled the indebtedness of a former shareholder and assigned the proceeds of a life insurance policy to a former shareholder.
All of the facts are stipulated and, together with exhibits, are incorporated herein by reference.
Petitioners filed a timely joint Federal income tax return for the year 1953 with the district director of…
2Cases cited5 opinions
- De Guire v. HigginsCourt of Appeals for the Second Circuit · 1947
- Gilmore v. CommissionerUnited States Tax Court · 1956
- Wilson v. CommissionerUnited States Tax Court · 1957
- Hobson v. CommissionerUnited States Tax Court · 1951
- Mrs. Leonie G. Mayer and Mrs. Leonie G. Mayer, (Substituted Plaintiff) v. Charles A. Donnelly, Collector of Internal RevenueCourt of Appeals for the Fifth Circuit · 1957
3Cited by30 opinions
- Henry Schwartz Corp. v. CommissionerUnited States Tax Court · 1973
- Kobacker v. CommissionerUnited States Tax Court · 1962
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- The Steel Improvement and Forge Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
- Lacy v. CommissionerUnited States Tax Court · 1963
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