W. E. Caldwell Co. v. Commissioner
United States Board of Tax Appeals
A cash dividend declared on February 1, 1918, payable on April 1, 1918, creates a debt due from the corporation to the stockholders immediately from the date of declaration, and under section 201 (e) of the Revenue Act of 1918, the distribution must be deemed to have come out of prior years' earnings, having been made during the first sixty days of the taxable year.
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A cash dividend declared on February 1, 1918, payable on April 1, 1918, creates a debt due from the corporation to the stockholders immediately from the date of declaration, and under section 201 (e) of the Revenue Act of 1918, the distribution must be deemed to have come out of prior years' earnings, having been made during the first sixty days of the taxable year. Invested capital should be reduced by the amount of the dividend as of the date of declaration, in accordance with section 326(d) of the same Act, without being affected by any earnings of the taxable year available for dividend…
1Opinion of the Court
*49OPINION.
Murdock:
The Commissioner admitted that he erroneously reduced invested capital by prorating $80,000 as being removed from March 1, 1918, to the end of the year, and now contends that the prorating should be from April 1, 1918, to the end of the year. He apparently concedes that the 1918 earnings available for dividend purposes on April 1 should be reduced by the proportionate part of a “ tentative tax,” which he has determined, and should be then deducted from $80,000, and the. remainder prorated as being removed from invested capital from April 1, 1918, to the end of the year. Thfe…
2Cases cited12 opinions
- Edwards v. DouglasSupreme Court of the United States · 1925
- Lockhart v. Van AlstyneMichigan Supreme Court · 1875
- Jermain v. Lake Shore & Michigan Southern Railway Co.New York Court of Appeals · 1883
- Ford v. SnookAppellate Division of the Supreme Court of the State of New York · 1923
- Staats v. Biograph Co.Court of Appeals for the Second Circuit · 1916
7 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Commissioner of Internal Revenue v. GoldwynCourt of Appeals for the Ninth Circuit · 1949
- Burdick v. CommissionerUnited States Board of Tax Appeals · 1931
- Columbia Pac. Shipping Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Columbia Pacific Shipping Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Ledyard v. CommissionerUnited States Board of Tax Appeals · 1941
2 more not listed; retrieve them via the Exa API.