C. F. Mueller Co. v. Commissioner
United States Board of Tax Appeals
1. The difference between payments on subscriptions to building and loan association shares and the amount received upon maturity of the shares, is not taxable in its entirety to the shareholder in the year of maturity, where the shareholder has consistently for all years accrued annually on his books and included in his income the net annual increase in the withdrawal value of the shares resulting from dividends declared and credited annually to his account on the books of…
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1. The difference between payments on subscriptions to building and loan association shares and the amount received upon maturity of the shares, is not taxable in its entirety to the shareholder in the year of maturity, where the shareholder has consistently for all years accrued annually on his books and included in his income the net annual increase in the withdrawal value of the shares resulting from dividends declared and credited annually to his account on the books of the association, but only so much of the gain as has not been accrued in prior years is taxable as a dividend in the…
1Opinion of the Court
*199OPINION.
Muedock :
Amounts received by a taxpayer upon fully paid building and loan shares in excess of the subscription payments on those shares are dividends. Aaron Ward & Sons, 23 B. T. A. 1279; affd., 65 Fed. (2d) 758. The building and loan associations were domestic corporations. A corporation receiving dividends from another domestic *200corporation was entitled to deduct them in computing taxable net income under section 23 (p) of tire Revenue Act of 1928 and similar provisions in prior acts. This was changed by the Revenue Act of 1932, which provided that a corporation could deduct…
2Cases cited5 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Brown v. HelveringSupreme Court of the United States · 1934
- Weiss v. WeinerSupreme Court of the United States · 1929
3Cited by7 opinions
- American Air Filter Co. v. CommissionerUnited States Tax Court · 1983
- Rockwell International Corp. v. CommissionerUnited States Tax Court · 1981
- American Air Filter Co. v. CommissionerUnited States Tax Court · 1983
- C. F. Mueller Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Estate of Cooper v. CommissionerUnited States Tax Court · 1960
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