Empire Press, Inc. v. Commissioner
United States Tax Court
For the sole purpose of saving tax by obtaining a dividends-received deduction and a deduction for a dividend paid on a short sale of stock, the petitioner, pursuant to a prearranged plan with a broker-dealer, engaged in certain transactions involving shares of 7% First Preferred stock of Western Maryland Railway Corporation.
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For the sole purpose of saving tax by obtaining a dividends-received deduction and a deduction for a dividend paid on a short sale of stock, the petitioner, pursuant to a prearranged plan with a broker-dealer, engaged in certain transactions involving shares of 7% First Preferred stock of Western Maryland Railway Corporation. Held, that the petitioner has failed to show that the transactions were not mere paper transactions without substance and that a dividends-received deduction and a deduction for a dividend paid on a short sale of stock taken on account of the transactions are within the…
1Opinion of the Court
Withet, Judge:
The Commissioner has determined a deficiency of $20,875.40 in the petitioner’s income tax for 1955. The issues for determination are the correctness of the respondent’s action (1) in disallowing a deduction of $18,445 taken as a dividends-received deduction and (2) in disallowing a deduction of $21,700 taken as a dividend paid on a short sale of corporate stock.
FINDINGS OF FACT.
Some of the facts have been stipulated and are found accordingly.
The petitioner is an Illinois corporation organized in 1941 and has its principal place of business in Chicago, Illinois. It filed its…
2Cases cited3 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
3Cited by29 opinions
- Karl F. Knetsch and Eva Fay Knetsch v. The United StatesUnited States Court of Claims · 1965
- Barnett v. CommissionerUnited States Tax Court · 1965
- United States v. Georgia Railroad and Banking CompanyCourt of Appeals for the Fifth Circuit · 1965
- Malden Knitting Mills v. CommissionerUnited States Tax Court · 1964
- Main Line Distributors, Inc. v. CommissionerUnited States Tax Court · 1962
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