Bartel v. Commissioner
United States Tax Court
The petitioner was the sole shareholder of a corporation which was liquidated in 1964. Among the corporate assets distributed to him was an account reflecting funds disbursed to him by the corporation over a period of years. For income tax purposes, the petitioner and the corporation had consistently treated those disbursements as loans, but the petitioner now contends that they were in fact payments of compensation or dividends.
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The petitioner was the sole shareholder of a corporation which was liquidated in 1964. Among the corporate assets distributed to him was an account reflecting funds disbursed to him by the corporation over a period of years. For income tax purposes, the petitioner and the corporation had consistently treated those disbursements as loans, but the petitioner now contends that they were in fact payments of compensation or dividends. Held, under the circumstances, such disbursements shall be treated as loans for purposes of computing gain on the liquidation.
1Opinion of the Court
OPINION
The petitioners ask us to consider all the circumstances surrounding the disbursements reflected in account No. 36 and to conclude that in fact those regular disbursements in 1954 and 1955 were payments of compensation and that most of the other disbursements were in fact dividends. According to the petitioners’ argument, if the disbursements did constitute payments of compensation and dividends, then they would not be taxable as a result of the liquidation of the corporation. The petitioners concede that $15,669 of the disbursements were loans so that they realized that amount on the…
2Cases cited28 opinions
- Otsuki v. CommissionerUnited States Tax Court · 1969
- R. H. Stearns Co. v. United StatesSupreme Court of the United States · 1934
- United States v. International Building Co.Supreme Court of the United States · 1953
- Gano v. CommissionerUnited States Board of Tax Appeals · 1930
- Ross v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1948
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3Cited by19 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Cluck v. CommissionerUnited States Tax Court · 1995
- Mayfair Minerals, Inc. v. CommissionerUnited States Tax Court · 1971
- Unvert v. CommissionerUnited States Tax Court · 1979
- Arkansas Best Corp. v. CommissionerUnited States Tax Court · 1984
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