Fitch v. Commissioner
United States Board of Tax Appeals
Where a corporation canceled certain indebtedness of its president and principal stockholder at a time when it had a substantial surplus and when the debtor was solvent, it is held that the amount of such canceled indebtedness is taxable to the debtor as a dividend.
1Opinion of the Court
OPINION.
Lansdon :
The respondent has asserted a deficiency in income taxes for 1925 in the amount of $3,554.04. The only question presented is whether the cancellation of certain indebtedness of petitioner by The F. W. Fitch Company, of which the petitioner was president and principal stockholder, is taxable as a dividend. The petitioner alleges that the amount represents a gift from The F. W. Fitch Company to petitioner and that it is not subject to tax.
On January 1, 1925, the petitioner was the record owner of 2,182 shares of The F. W. Fitch Company, which had 2,372 shares of stock…
2Cited by4 opinions
- Waggaman v. CommissionerUnited States Board of Tax Appeals · 1933
- Fitch v. CommissionerUnited States Board of Tax Appeals · 1933
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1936
- Waggaman v. CommissionerUnited States Board of Tax Appeals · 1933