Cepeda v. Commissioner
United States Tax Court
P was the president and sole shareholder in C, a professional association. C advanced funds to or on behalf of P for his personal expenses and investments. In 1987, P filed for bankruptcy. In 1988, C advanced $ 95,101 in payments to or on behalf of P, including payments to the bankruptcy trustee to repurchase C's stock from the bankruptcy estate.
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P was the president and sole shareholder in C, a professional association. C advanced funds to or on behalf of P for his personal expenses and investments. In 1987, P filed for bankruptcy. In 1988, C advanced $ 95,101 in payments to or on behalf of P, including payments to the bankruptcy trustee to repurchase C's stock from the bankruptcy estate. In all instances, P made decisions as C's sole shareholder, despite the fact that the bankruptcy trustee held legal title to the stock. In Cepeda v. Commissioner, T.C. Memo. 1993-477, we held these advances to be constructive dividends, not loans. P…
1Opinion of the Court
EDUARDO CEPEDA AND MARTA I. CEPEDA, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent; EDUARDO CEPEDA, M.D., P.A., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Cepeda v. Commissioner
Docket Nos. 298-92, 299-92
United States Tax Court
T.C. Memo 1994-62; 1994 Tax Ct. Memo LEXIS 63; 67 T.C.M. (CCH) 2181;
February 17, 1994, Filed
Cepeda v. Commissioner, T.C. Memo 1993-477, 1993 Tax Ct. Memo LEXIS 488 (T.C., 1993)
An appropriate order will be issued denying petitioners' motion for reconsideration without further trial.
P was the president and sole shareholder in C, a professional…
2Cases cited25 opinions
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- Corliss v. BowersSupreme Court of the United States · 1930
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