Jos. K., Inc. v. Commissioner
United States Tax Court
Petitioner was a loan company incorporated in California, on Apr. 23, 1959, with an initial capitalization of $ 1,500. Ninety-nine percent of the issued and outstanding stock was owned by Joseph K. Stanley, petitioner's president, and his wife, Ernestine. At the time of petitioner's incorporation, assets (primarily in the form of notes receivable) were transferred to petitioner from another corporation controlled by Joseph K. Stanley.
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Petitioner was a loan company incorporated in California, on Apr. 23, 1959, with an initial capitalization of $ 1,500. Ninety-nine percent of the issued and outstanding stock was owned by Joseph K. Stanley, petitioner's president, and his wife, Ernestine. At the time of petitioner's incorporation, assets (primarily in the form of notes receivable) were transferred to petitioner from another corporation controlled by Joseph K. Stanley. During 4 years of corporate life, more than 80 percent of petitioner's income in each year was interest from the notes transferred to it or from notes…
1Opinion of the Court
Hoyt, Judge:
Respondent determined the following deficiencies in petitioner’s income taxes for the taxable years ended April 30, 1960, 1961, and 1962:
Fiscal year Deficiency
1980 ___$6,805.38
1961 _14,317.24
1962 _10, 471. 39
31, 594. 01
The only questions presented for our decision are whether respondent wias correct in imposing the personal holding company tax of section 541, I.R.C. 1954, and if so, if petitioner is entitled to a divi-dents-paid deduction to be carried back and applied to prior years before liquidation under section 562.1
OPINION
All of the facts have been stipulated and are adopted…
2Cases cited13 opinions
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- United States v. IshamSupreme Court of the United States · 1873
- United States v. Leslie Salt Co.Supreme Court of the United States · 1956
- J. C. Penney Company, Transferee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- J. C. Penney Co. v. CommissionerUnited States Tax Court · 1962
8 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Jos. K., Inc. v. CommissionerUnited States Tax Court · 1969