A. B. C. D. Lands, Inc. v. Commissioner
United States Tax Court
Petitioner, which owned a number of farms leased to tenant farmers pursuant to crop share agreements, distributed during 1958 through 1961 a portion of the crop share rents received by it to its three stockholders as a dividend in kind. The distribution was effected merely by the transfer of legal title in the crops to the stockholders.
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Petitioner, which owned a number of farms leased to tenant farmers pursuant to crop share agreements, distributed during 1958 through 1961 a portion of the crop share rents received by it to its three stockholders as a dividend in kind. The distribution was effected merely by the transfer of legal title in the crops to the stockholders. It was fully expected by petitioner and its stockholders at the time of each distribution that the crops would be disposed of soon after, which in fact occurred. The purpose of these yearly distributions was to avoid taxation thereon at the corporate level.…
1Opinion of the Court
OPINION
It is petitioner’s position essentially that no amount is includable in its gross income during the years 1958 through 1961 on account of certain crop share rents paid to it by its tenant farmers and then purportedly distributed by it to its stockholders as a dividend in kind. Petitioner argues first that it realized no income at the time the crop share rents were paid to it by its tenant farmers by virtue of section 1.61-4(a) of the Income Tax Regulations.8 Petitioner next contends, relying upon the provisions of section 311(a),9 that it did not, by its distribution of the crop share…
2Cases cited21 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- United States v. Joliet & Chicago RailroadSupreme Court of the United States · 1942
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Baird v. CommissionerUnited States Tax Court · 1955
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3Cited by21 opinions
- Waltham Netoco Theatres, Inc. v. CommissionerUnited States Tax Court · 1968
- Clyde G. Tatum and Veta Rae Tatum v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
- Gulf Oil Corp. v. CommissionerUnited States Tax Court · 1986
- Weinberg v. CommissionerUnited States Tax Court · 1965
- Harry H. Hines, Jr. v. United StatesCourt of Appeals for the Fifth Circuit · 1973
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