Saigh v. Commissioner

OPINION.

Van Fossan, Judge:

The first issue is whether the transfer of $2,205,000 2 from Building Inc. to Investment on June 29, 1946, constituted a “loan,” as argued by petitioners, or a distribution taxable as a dividend, as contended by respondent.

Section 115 of the Internal Eevenue Code of 1939 provides as follows:

SEO. 115. DISTRIBUTIONS BY CORPORATIONS.(a) Definition of Dividend. — The term “dividend” when nsed in this chapter * * * means any distribution made by a corporation to its shareholders, whether in money or in other property, (1) out of its earnings or profits accumulated after…