Kelham v. Commissioner
United States Tax Court
1. In determining earnings or profits accumulated after February 28, 1913, held that capital impaired by pre-March 1, 1913, operating losses must be restored out of subsequent earnings or profits. 2. Where shares of a corporation are forfeited or "bid" in for the amount of unpaid assessments or calls thereon and after being carried on the books of the corporation as treasury shares for some years and, at a time when the corporate capital stands impaired from operating…
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1. In determining earnings or profits accumulated after February 28, 1913, held that capital impaired by pre-March 1, 1913, operating losses must be restored out of subsequent earnings or profits. 2. Where shares of a corporation are forfeited or "bid" in for the amount of unpaid assessments or calls thereon and after being carried on the books of the corporation as treasury shares for some years and, at a time when the corporate capital stands impaired from operating losses, are issued in consideration for the cancellation of notes of the corporation which had been given to cover advances to…
1Opinion of the Court
OPINION.
Turner, Judge:
The respondent has determined deficiencies in income tax against the petitioners as follows:
Petitioner Docket No. 1937 1938 1939 1940
Grace H. Kelham.. 6333 $48,658.15
Leila H. Neill. 6334 $2,990.24 $242.05 46,762.19
Ellis M. Moore_ 6495 $6,989.38 3,274.99 2,744.62 23,499.16
Harriet H. Belcher. 5559 1,471.00
Lillie S. Wegeforth. 5560 711.19 1,069.75 80,032.58
Overpayments are claimed as follows:
1937 1938 1939 Petitioner
Leila H. Neill.
$10,436.63 5,723.26 7,324.66 Ellis M. Moore.
15,578.82 S.
The petitioners, during the years 1938 through 1940, were stockholders of J. D. & A. B.…
2Cases cited11 opinions
- Lynch v. HornbySupreme Court of the United States · 1918
- Willcuts v. Milton Dairy Co.Supreme Court of the United States · 1927
- Helvering v. CanfieldSupreme Court of the United States · 1934
- Commissioner v. PhippsSupreme Court of the United States · 1949
- Cluett, Peabody & Co. v. CommissionerUnited States Tax Court · 1944
6 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Sid Luckman and Estelle Luckman v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1969
- Spreckels v. CommissionerUnited States Tax Court · 1949
- Kelham v. CommissionerUnited States Tax Court · 1949
- Spreckels v. CommissionerUnited States Tax Court · 1949