Berlin v. Commissioner
United States Tax Court
1. The Berlins, who owned 50 percent of the stock of Vogue, purchased the remaining 50 percent from the Reimers in 1956. The total consideration paid was $45,000, $10,000 of which was paid by Vogue purportedly for assignment of a lease on the premises occupied by Vogue and owned by the Reimers which had less than 3 years to run. Held, the total consideration was for the purchase of stock and the Berlins are taxable on the $10,000 paid by Vogue as a constructive dividend.
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1. The Berlins, who owned 50 percent of the stock of Vogue, purchased the remaining 50 percent from the Reimers in 1956. The total consideration paid was $45,000, $10,000 of which was paid by Vogue purportedly for assignment of a lease on the premises occupied by Vogue and owned by the Reimers which had less than 3 years to run. Held, the total consideration was for the purchase of stock and the Berlins are taxable on the $10,000 paid by Vogue as a constructive dividend. Held, further, Vogue is not entitled to deductions for amortization of the cost of the lease. 2. In 1957, Vogue paid two…
1Opinion of the Court
Harry I. Berlin and Sadye J. Berlin v. Commissioner. The Vogue, Inc. v. Commissioner.
Berlin v. Commissioner
Docket Nos. 80164, 80165.
United States Tax Court
T.C. Memo 1961-194; 1961 Tax Ct. Memo LEXIS 149; 20 T.C.M. (CCH) 969; T.C.M. (RIA) 61194;
June 30, 1961
1. The Berlins, who owned 50 percent of the stock of Vogue, purchased the remaining 50 percent from the Reimers in 1956. The total consideration paid was $45,000, $10,000 of which was paid by Vogue purportedly for assignment of a lease on the premises occupied by Vogue and owned by the Reimers which had less than 3 years to run. Held, the…
2Cases cited9 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
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3Cited by1 opinion
- Brown v. Comm'rUnited States Tax Court · 2017