Bush Bros. & Co. v. Commissioner
United States Tax Court
Petitioner is a family-owned corporation. During the period in question, petitioner distributed to its shareholders five dividends in kind, consisting of bills of sale to properties purchased from a supplier. In each of the five situations, the shareholders immediately sold the properties back to the supplier. Thus the properties never left the possession of the supplier.
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Petitioner is a family-owned corporation. During the period in question, petitioner distributed to its shareholders five dividends in kind, consisting of bills of sale to properties purchased from a supplier. In each of the five situations, the shareholders immediately sold the properties back to the supplier. Thus the properties never left the possession of the supplier. Since the dividends were primarily motivated by tax avoidance, without any substantial business purpose and the properties distributed were immediately sold, as expected, under the influence of petitioner, held, the income…
1Opinion of the Court
Bruce, Judge:
Respondent determined deficiencies in the petitioner’s Federal income taxes for the fiscal years ending (FYE) April 30, 1972, and April 30, 1974, in the amounts of $30,012.24 and $396,337.66, respectively, as set forth in his statutory notice of deficiency dated November 4,1975. Presented for our decision are (1) whether a sale by petitioner’s shareholders of a dividend in kind of navy beans by petitioner will be imputed to petitioner, (2) whether these dividends sold by the shareholders were anticipatory assignments of income and thus part of petitioner’s income, (3) whether…
Also in this document: Dissent.
2Cases cited23 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Avery v. CommissionerSupreme Court of the United States · 1934
- United States v. Lynch. Lynch v. United StatesCourt of Appeals for the Ninth Circuit · 1951
18 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- American Air Filter Co. v. CommissionerUnited States Tax Court · 1983
- Moser v. CommissionerCourt of Appeals for the Eighth Circuit · 1990
- Bush Brothers and Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1982
- Framatome Connectors USA, Inc. v. Comm'rUnited States Tax Court · 2002
- Anderson v. Comm'rUnited States Tax Court · 1989
10 more not listed; retrieve them via the Exa API.