Joseph L. O'Brien Co. v. Commissioner
United States Tax Court
On December 7, 1954, American, the owner of shares of stock in General, entered into an arrangement to sell the stock at a stated price subject to the happening of stated conditions. The arrangement provided that if the sale was consummated as therein provided, all dividends thereafter paid or payable on the stock should be the "property" of the purchaser and should be paid to the purchaser at the time of the payment of the purchase price of the stock.
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On December 7, 1954, American, the owner of shares of stock in General, entered into an arrangement to sell the stock at a stated price subject to the happening of stated conditions. The arrangement provided that if the sale was consummated as therein provided, all dividends thereafter paid or payable on the stock should be the "property" of the purchaser and should be paid to the purchaser at the time of the payment of the purchase price of the stock. Previously General had declared certain dividends on its stock payable December 31, 1954, to stockholders of record on December 20, 1954. At…
1Opinion of the Court
OPINION.
Withet, Judge:
Respondent has determined a deficiency in the income tax of petitioner for the year 1955 in the amount of $14,055.60. The only issue to be decided is whether petitioner is entitled to a dividends-received deduction for dividends paid upon stock purchased by petitioner prior to the closing of the purchase transaction. Another issue raised by amended pleadings has been disposed of by stipulation of the parties.
All of the facts herein have been stipulated and are so found.
Petitioner is a corporation organized on December 22, 1954, under the laws of Pennsylvania. Its first…
2Cases cited2 opinions
- Rupe Investment Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Rupe Inv. Corp. v. CommissionerUnited States Tax Court · 1958
3Cited by6 opinions
- Pacific Coast Music Jobbers, Inc. v. CommissionerUnited States Tax Court · 1971
- Waterman S.S. Corp. v. CommissionerUnited States Tax Court · 1968
- Joseph L. O'Brien Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1962
- Joseph L. O'Brien Co. v. CommissionerUnited States Tax Court · 1961
- Pacific Coast Music Jobbers, Inc. v. CommissionerUnited States Tax Court · 1971
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