Foley Sec. Corp. v. Commissioner
United States Board of Tax Appeals
Petitioner, a personal holding company with a capital deficit, having distributed in the tax year not only the excess of its "adjusted net income" over the deficit, but also an additional amount, held, not entitled to a "dividends paid" credit for such additional amount under section 351, Revenue Act of 1934, since the term "dividends" does not apply to distributions out of earnings or profits necessary to make good an existing deficit.
1Opinion of the Court
OPINION.
Opper:
This proceeding involves a deficiency in income tax of $4,100.59 for the year 1934. It is stipulated that the petitioner, organized in 1928, was a “personal holding company” as defined in section 351 of the Revenue Act of 1934, and it is therefore subject to the provisions of that section. As of the beginning of the taxable year the petitioner had a deficit which is stipulated for the purpose of this proceeding to be $23,650.53. Its “adjusted net income” for the year 1934, computed under the provisions of section 351, was $49,909.52. On December 28, 1934, pursuant to a…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Willcuts v. Milton Dairy Co.Supreme Court of the United States · 1927
3Cited by16 opinions
- Fides, AG v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1943
- Foley Securities Corp. v. CommissionerCourt of Appeals for the Eighth Circuit · 1939
- Foley Securities Corp. v. Commissioner of Int. Rev.Court of Appeals for the Eighth Circuit · 1939
- Cranson v. United StatesCourt of Appeals for the Ninth Circuit · 1945
- Cottrell v. CommissionerUnited States Tax Court · 1970
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