Dean v. Commissioner
United States Tax Court
In the taxable year 1939, Nemours, a personal holding corporation on a cash basis, distributed certain assets in kind to its two stockholders. In determining the earnings and surplus of Nemours available for dividends in the taxable year, respondent increased its earnings and profits per books by certain amounts. The inclusion of certain items and the exclusion of other items is contested.
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In the taxable year 1939, Nemours, a personal holding corporation on a cash basis, distributed certain assets in kind to its two stockholders. In determining the earnings and surplus of Nemours available for dividends in the taxable year, respondent increased its earnings and profits per books by certain amounts. The inclusion of certain items and the exclusion of other items is contested. The respondent also increased the gross income of the respective petitioners by (a) the pro rata share of $ 12,000, which he fixed as the rental value of property owned by Nemours and occupied in the…
1Opinion of the Court
OPINION.
Leech, Judge:
The first issue is whether petitioners received taxable dividends upon the distribution to them in kind of certain assets of Nemours which had appreciated in value. Petitioners do not contest the rule that dividend distributions in kind are taxable to the extent that the corporation has accumulated earnings and profits in the taxable year available for the payment of dividends. Sec. 115, I. R. C. Petitioners protest the respondent’s action in adding to the earnings and profits of Nemours, per books as of December 31, 1939, the appreciated value of the securities…
2Cases cited7 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- Palmer v. CommissionerSupreme Court of the United States · 1937
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- National Carbon Co. v. CommissionerUnited States Tax Court · 1943
2 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Challenge Mfg. Co. v. CommissionerUnited States Tax Court · 1962
- Dean v. CommissionerUnited States Tax Court · 1961
- Greenspun v. CommissionerUnited States Tax Court · 1979
- Commissioner of Internal Revenue v. Hirshon TrustCourt of Appeals for the Second Circuit · 1954
- Schofield v. United StatesDistrict Court, N.D. Ohio · 1962
7 more not listed; retrieve them via the Exa API.