Hodous v. Commissioner
United States Tax Court
Between 1935 and 1943, petitioner entered into agreements with stockholders of a corporation holding defaulted farm mortgages. The agreements provided that the stockholders would endorse their shares in blank and give them to petitioner for the purpose of compelling the management of the corporation to liquidate. If successful, petitioner was to receive a percentage of the amounts paid to the shareholders in liquidation.
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Between 1935 and 1943, petitioner entered into agreements with stockholders of a corporation holding defaulted farm mortgages. The agreements provided that the stockholders would endorse their shares in blank and give them to petitioner for the purpose of compelling the management of the corporation to liquidate. If successful, petitioner was to receive a percentage of the amounts paid to the shareholders in liquidation. If unsuccessful, he was to return the shares to the stockholders. (1) The sums received by petitioner in 1943, 1944, and 1945 as the percentage of dividends in liquidation…
1Opinion of the Court
OPINION.
Arundell, Judge:
The principal issue here is whether the amounts paid to the petitioner by the liquidating trust in the years 1943, 1944, and 1945 constituted a return of capital and, therefore, were not taxable income to the petitioner, or whether such amounts constituted compensation for services rendered by petitioner in bringing about the liquidation of the Midwest Land Co.
Between 1935 and 1943, petitioner entered into agreements with a number of stockholders of Midwest by the terms of which he was authorized to vote their holdings in order to bring about a liquidation of the…
2Cases cited2 opinions
- Belser v. CommissionerUnited States Tax Court · 1948
- Ansorge v. CommissionerUnited States Tax Court · 1943
3Cited by2 opinions
- Blakeslee v. CommissionerUnited States Tax Court · 1977
- Hodous v. CommissionerUnited States Tax Court · 1950