Henry C. Beck Co. v. Commissioner
United States Tax Court
In 1955, Management, a corporation wholly owned by petitioner and its joint venturer, Utah, distributed $ 250,000 to petitioner. The distribution was made by Management from a profit "realized" in 1954 from its two wholly owned corporations, but which it did not "recognize" for income tax purposes because of filing a consolidated return.
Read the full summary
In 1955, Management, a corporation wholly owned by petitioner and its joint venturer, Utah, distributed $ 250,000 to petitioner. The distribution was made by Management from a profit "realized" in 1954 from its two wholly owned corporations, but which it did not "recognize" for income tax purposes because of filing a consolidated return. Petitioner treated the distribution as an ordinary dividend, deducting 85 percent of the distribution under sec. 243, I.R.C. 1954, and reporting the remaining 15 percent as a taxable dividend. Respondent determined that the distribution was not a dividend…
1Opinion of the Court
OPINION
The key question in this case is whether the $250,000 distribution to petitioner, which was made from Management’s $1,065,313.09 profit on its Davenport venture, was made out of Management’s “earning and profits.”
Petitioner claims that the intercompany construction profit earned by Management became a part of its earnings and profits on receipt in 1954, and thus the distribution made out of such profit in 1955 was a dividend to petitioner. It is argued that this result is not altered by the fact that, in accordance with the consolidated return regulations, the profit was not…
2Cases cited13 opinions
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- Commissioner v. GordonSupreme Court of the United States · 1968
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Commissioner of Internal Revenue v. Oscar E. Baan and Evelyn K. BaanCourt of Appeals for the Ninth Circuit · 1967
- Bangor & A. R. Co. v. CommissionerUnited States Tax Court · 1951
8 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Henry C. Beck Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1970
- Welle v. CommissionerUnited States Tax Court · 2013
- Juha v. Comm'rUnited States Tax Court · 2012
- Perano v. Comm'rUnited States Tax Court · 2008
- Prescott v. CommissionerUnited States Tax Court · 1976
14 more not listed; retrieve them via the Exa API.