Rupe Inv. Corp. v. Commissioner
United States Tax Court
The petitioner entered into a contract with an individual and his controlled interests whereby it agreed to acquire stock of a hotel corporation at prices not in excess of certain fixed amounts, and to transfer such stock to one of the controlled corporations, which would pay the petitioner its net cost, plus $ 1 per share.
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The petitioner entered into a contract with an individual and his controlled interests whereby it agreed to acquire stock of a hotel corporation at prices not in excess of certain fixed amounts, and to transfer such stock to one of the controlled corporations, which would pay the petitioner its net cost, plus $ 1 per share. Pursuant to the contract one of such interests advanced to the petitioner all the money for the purchase of the stock and another loaned the hotel corporation money which was used to pay a dividend while the stock was still in the name of the petitioner, thereby reducing…
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in income tax for the taxable year ended June 30, 1950, in the amount of $29,979.32.
The basic question presented is whether, as contended by the petitioner, it was the owner of certain stock and dividends paid with respect thereto, and therefore entitled to a dividends-received credit, and to an ordinary loss upon the later sale of the stock, or whether, as determined by the respondent, the petitioner merely held legal title for the benefit of another corporation and derived ordinary income for brokerage services in acquiring the stock for…
2Cases cited13 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Corliss v. BowersSupreme Court of the United States · 1930
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Richardson v. ShawSupreme Court of the United States · 1908
8 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Rupe Investment Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- Lacy v. CommissionerUnited States Tax Court · 1963
- Reitz v. CommissionerUnited States Tax Court · 1974
19 more not listed; retrieve them via the Exa API.