Johnson v. Commissioner
United States Board of Tax Appeals
Petitioner subscribed to shares of stock in a realty corporation. In 1935 the shareholders of the corporation voted to dissolve the corporation and appointed a liquidator. The liquidator transferred substantially all corporate property to mortgage creditors and in order to pay other creditors and liquidation expenses, and to place the shareholders upon an equal basis, made calls upon the subscribers for additional payments on their subscriptions.
Read the full summary
Petitioner subscribed to shares of stock in a realty corporation. In 1935 the shareholders of the corporation voted to dissolve the corporation and appointed a liquidator. The liquidator transferred substantially all corporate property to mortgage creditors and in order to pay other creditors and liquidation expenses, and to place the shareholders upon an equal basis, made calls upon the subscribers for additional payments on their subscriptions. The subscribers whose subscriptions were not fully paid, including petitioner, received no distribution of physical assets. The liquidator canceled…
1Opinion of the Court
*964OPINION.
Van Fossan:
The sole question before us is whether or not petitioner received a distribution in liquidation within the purview of section 115 (c) of the Revenue Act of 1934.1 If we should hold that petitioner received a liquidating dividend, petitioner’s loss must be limited by the provisions of section 117 (d) of the Revenue Act of 1934.2 The parties agree that petitioner sustained a loss in the taxable year on his investment in the stock of the Great Miami Realty Corporation.
Petitioner contends that he sustained an ordinary loss due to the fact that his stock in the corporation…
2Cases cited6 opinions
- White v. United StatesSupreme Court of the United States · 1938
- Helvering v. Chester N. Weaver Co.Supreme Court of the United States · 1938
- Fletcher v. Bank of LonokeSupreme Court of Arkansas · 1902
- Cumberland Lumber Co. v. Clinton Hill Lumber Manufacturing Co.Supreme Court of New Jersey · 1899
- Philips v. SlocombSuperior Court of Delaware · 1933
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Commissioner of Internal Revenue v. JohnsonCourt of Appeals for the Sixth Circuit · 1942
- Johnson v. CommissionerUnited States Board of Tax Appeals · 1941