Gerlach v. Commissioner
United States Board of Tax Appeals
Petitioner purchased stock, paying part in cash and giving his notes for the balance, the stock being deposited under a contract with a trustee as collateral security for payment of the notes, with power to sell in case of default. Thereafter, he assigned his interest in the contract and the stock to his wife by another contract, signed by her, providing that the dividends received thereon should be used to satisfy the existing encumbrance on the stock.
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Petitioner purchased stock, paying part in cash and giving his notes for the balance, the stock being deposited under a contract with a trustee as collateral security for payment of the notes, with power to sell in case of default. Thereafter, he assigned his interest in the contract and the stock to his wife by another contract, signed by her, providing that the dividends received thereon should be used to satisfy the existing encumbrance on the stock. During the taxable years in question all the dividends on the escrowed stock were paid to the wife and were then applied to the stock…
1Opinion of the Court
*569OPINION.
Leech :
A stipulation of the parties discloses that the sum of $268 included by respondent in petitioner’s income for each of the years involved represented dividends paid his wife on 67 shares of stock acquired by her independently of the contract of November 15, 1919. It is apparent that these amounts did not represent income to petitioner and respondent is therefore in error as to this item.
This leaves the question as to whether the dividend payments made by the Gerlach-Barklow Company of $15,184 in each of the years 1923 and 1924 to petitioner’s wife on 3,796 shares of stock…
2Cases cited10 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- United States v. PhellisSupreme Court of the United States · 1921
- Insurance Co. v. DutcherSupreme Court of the United States · 1877
- O'BRIEN v. MillerSupreme Court of the United States · 1897
- District of Columbia v. GallaherSupreme Court of the United States · 1888
5 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Gerlach v. CommissionerUnited States Board of Tax Appeals · 1933