Faulkner v. Commissioner
United States Tax Court
Under the provisions of section 115 (c) of the Internal Revenue Code, liquidating distributions received by stockholders are distributions in "complete liquidation," and gain resulting therefrom is taxable as long term capital gain, if they were made pursuant to a bona fide plan of liquidation under which the liquidation was to be completed within three years from the close of the taxable year. Actual completion of the liquidation within the 3-year period is not required.
1Opinion of the Court
OPINION..Mellott, Judge:
The Commissioner determined a deficiency in the income tax of petitioner- for the calendar year 1939 in the amount of $78.72. Petitioner claims she has made an overpayment of tax in the amount of $750.80.
The sole question is whether liquidating distributions received by petitioner in 1938 and 1939 were “amounts distributed in complete liquidation” within the meaning of section 115 (c) of the Internal Revenue Code.1
The following facts have been stipulated:
1. On or about May 29, 1931 the petitioner purchased 100 shares of The Chesapeake Corporation at a cost of $3,140.00.
2Cases cited7 opinions
- United States v. HartwellSupreme Court of the United States · 1868
- Hamilton v. RathboneSupreme Court of the United States · 1899
- Bate Refrigerating Co. v. SulzbergerSupreme Court of the United States · 1895
- Commissioner of Immigration of Port of NY v. GottliebSupreme Court of the United States · 1924
- John Denn, Lessee of Charles C. Scott, and Others v. Thomas Reid, Jun., and OthersSupreme Court of the United States · 1836
2 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Brown v. CommissionerUnited States Tax Court · 1946
- Chick v. CommissionerUnited States Tax Court · 1946
- Mason v. CommissionerUnited States Tax Court · 1944
- Kraus Trust v. CommissionerUnited States Tax Court · 1946
- Brown v. CommissionerUnited States Tax Court · 1946
5 more not listed; retrieve them via the Exa API.