Van Keuren v. Commissioner
United States Board of Tax Appeals
1. Where subsequent to the complete organization of a corporation it incurred expenditures for commissions, salaries, advertising, rent, etc., in connection with the sale of a portion of its authorized capital stock, held that such expenditures did not constitute organization expenses and that they do not constitute an allowable deduction as a loss in determining the net income of the corporation in a subsequent year when it surrendered its charter and was dissolved. 2. A…
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1. Where subsequent to the complete organization of a corporation it incurred expenditures for commissions, salaries, advertising, rent, etc., in connection with the sale of a portion of its authorized capital stock, held that such expenditures did not constitute organization expenses and that they do not constitute an allowable deduction as a loss in determining the net income of the corporation in a subsequent year when it surrendered its charter and was dissolved. 2. A deduction claimed as a loss sustained by a corporation upon dissolution and the abandonment of its business disallowed for…
1Opinion of the Court
*485OPINION.
Trammell :
The petitioner contends that the amount of $31,163.42 expended by the Delaware corporation as vertising, stationery, rent, telegraph, and telephone in the sale of its capital stock in 1919, 1920, and 1921 constituted a deductible loss in determining the corporation’s net income for 1925, the year in which it surrendered its corporate franchise and was dissolved. The respondent contends that, since the amount was expended by the corporation in connection with the procurement of capital through the sale of stock, it constituted a capital expenditure which served to reduce the…
2Cases cited2 opinions
- Malta Temple Ass'n v. CommissionerUnited States Board of Tax Appeals · 1929
- Simmons Co. v. CommissionerUnited States Board of Tax Appeals · 1927
3Cited by12 opinions
- Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964
- McCrory Corporation v. United StatesCourt of Appeals for the Second Circuit · 1981
- Niagara Share Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Addressograph-Multigraph Corp. v. Comm'rUnited States Tax Court · 1945
- American Loan Co. v. HandyDistrict Court, D. Delaware · 1936
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