Lacy v. Commissioner
United States Tax Court
1. Dividend-Bargain Purchase -- Title Acquired Indirectly. -- The Commissioner did not err in holding that the petitioner had received a dividend through a bargain purchase from petitioner's wholly owned corporation where he paid the purchase price and before the deal was closed, received a deed to the property.
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1. Dividend-Bargain Purchase -- Title Acquired Indirectly. -- The Commissioner did not err in holding that the petitioner had received a dividend through a bargain purchase from petitioner's wholly owned corporation where he paid the purchase price and before the deal was closed, received a deed to the property. It is not determinative that after the petitioner became the equitable owner of the stock but before certificates were issued in his name, the old stockholders and officers deeded the property to a former stockholder who then deeded it promptly to the petitioner, all in accordance…
1Opinion of the Court
OPINION.
Murdock, Judge:
The only question for decision is whether Lacy bought the bank building from Cuckler, Brown & Co. for $100,000 or whether he bought it indirectly from the bank for $33,000. He agrees that the property was worth $133,000 and does not argue that the bank had less than $100,000 of earned surplus and undivided profits. Furthermore, each of those facts is inherent in the Commissioner’s determination, is presumed to be correct, and has not been disproven. The Commissioner concedes that he has taken inconsistent positions in taxing this dividend to Lacy and to Cuckler and…
2Cases cited20 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
- Helvering v. Tex-Penn Oil Co.Supreme Court of the United States · 1937
- Allen, Collector of Internal Revenue v. WernerCourt of Appeals for the Fifth Circuit · 1951
15 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Seay v. CommissionerUnited States Tax Court · 1972
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
- Grummer v. CommissionerUnited States Tax Court · 1966
- Coven v. CommissionerUnited States Tax Court · 1976
- Graphic Press, Inc. v. CommissionerUnited States Tax Court · 1973
17 more not listed; retrieve them via the Exa API.