Cornwall v. Commissioner
United States Tax Court
1. The interest of a member of an association taxable as a corporation is to be treated as stock in determining whether a distribution from the association to the member is to be taxed as a dividend and a payment in retirement of a portion of a member's interest is to be treated as a redemption under sec. 317(b), I.R.C. 1954, by the association of a portion of the member's stock. 2. A distribution to a member of an association taxable as a corporation which is made to a…
Read the full summary
1. The interest of a member of an association taxable as a corporation is to be treated as stock in determining whether a distribution from the association to the member is to be taxed as a dividend and a payment in retirement of a portion of a member's interest is to be treated as a redemption under sec. 317(b), I.R.C. 1954, by the association of a portion of the member's stock. 2. A distribution to a member of an association taxable as a corporation which is made to a member who does not hold a majority interest as a result of his request to withdraw from the association, is approved by the…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency in petitioners’ income tax for the calendar year 1961 in the amount of $71,752.08. The issue for decision is whether the amount of a cash distribution made to one of petitioners by an association which is taxable as a corporation constituted ordinary income or long-term capital gain.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioners, husband and wife who resided at the time of the filing of the petition in this case in Westfield, N.J., filed their joint Federal income tax return for the calendar year…
2Cases cited15 opinions
- Burk-Waggoner Oil Assn. v. HopkinsSupreme Court of the United States · 1925
- Heman v. CommissionerUnited States Tax Court · 1959
- Eva D. Bradbury v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1962
- Lewis v. CommissionerUnited States Tax Court · 1960
- Lewis v. CommissionerUnited States Tax Court · 1966
10 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Associated Machine v. CommissionerUnited States Tax Court · 1967
- Lisle v. CommissionerUnited States Tax Court · 1976
- Cornwall v. CommissionerUnited States Tax Court · 1967