Joseph v. Commissioner
United States Board of Tax Appeals
A corporation of which the petitioners were stockholders was legally dissolved in 1919 and the assets were received by the directors (who constituted the stockholders) as trustees in liquidation; in 1920 they sold the assets to a partnership (composed of the three principal stockholders) at their book value, receiving in payment therefor four promissory notes.
Read the full summary
A corporation of which the petitioners were stockholders was legally dissolved in 1919 and the assets were received by the directors (who constituted the stockholders) as trustees in liquidation; in 1920 they sold the assets to a partnership (composed of the three principal stockholders) at their book value, receiving in payment therefor four promissory notes. Held, that the petitioners derived income measured by the difference between the cost of their shares and the book value at date of dissolution of the corporation.
1Opinion of the Court
*597OPINION.
Smith :
The respondent determined the deficiencies in income tax of the petitioners for the year 1920 upon the ground that the Irving Gollober-Joseph Corporation, of which the petitioners were the principal stockholders, was dissolved on January 2, 1920; that the assets of the corporation then passed directly to the stockholders as tenants in common of the property, and that the petitioners received taxable income in 1920 to the extent that the book value of their shares at the date of dissolution exceeded the par value of their shares. Appeals of E. C. Huffman 1 B. T. A. 52; John K.…
2Cases cited5 opinions
- Havemeyer v. Superior CourtCalifornia Supreme Court · 1890
- Rossi v. CaireCalifornia Supreme Court · 1916
- Southern Pacific Co. v. Industrial Accident CommissionCalifornia Supreme Court · 1916
- Jones v. PeckCalifornia Court of Appeal · 1923
- Crystal Pier Co. v. SchneiderCalifornia Court of Appeal · 1919
3Cited by5 opinions
- Vonnegut Hardware Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Joseph v. CommissionerUnited States Board of Tax Appeals · 1927
- T. T. Word Supply Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Vonnegut Hardware Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Vonnegut Hardware Co. v. CommissionerUnited States Board of Tax Appeals · 1933