Henninger v. Commissioner
United States Board of Tax Appeals
A corporation had at the beginning of the year 1924 a deficit, or impairment of capital, caused by making distributions in prior years in amounts greater than its then accumulated earnings or profits. It also had at the beginning of 1924 earnings or profits made since February 28, 1913, computed without deduction for the deficit or impairment of capital.
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A corporation had at the beginning of the year 1924 a deficit, or impairment of capital, caused by making distributions in prior years in amounts greater than its then accumulated earnings or profits. It also had at the beginning of 1924 earnings or profits made since February 28, 1913, computed without deduction for the deficit or impairment of capital. Held, that in determining the amount available for the payment of "dividends," such earnings or profits should not be reduced by the amount of the deficit, or impairment of capital.
1Opinion of the Court
*1237OPINION.
MaRquette :
It is the contention of the petitioner that at the beginning of the year 1924, each of the four corporations named in the findings of fact had a capital deficit, or impairment of capital, greater in amount than its earnings for 1924 and 1925; that, therefore, they had no accumulated earnings or profits available for the payment of dividends in those years, and that the' distributions of which the petitioner received a part, and which constitute the receipts on which the deficiencies herein are predicated, represented a return of capital and not taxable income. Stated in…
2Cited by10 opinions
- Van Norman Co. v. WelchCourt of Appeals for the First Circuit · 1944
- Estate of Uris v. CommissionerUnited States Tax Court · 1977
- Estate of Uris v. CommissionerCourt of Appeals for the Second Circuit · 1979
- Ca 79-3190 Estate of Percy Uris, Deceased, Irving Trust Co., and Joanne Uris v. Commissioner of Internal Revenue, Harold D. Uris and Ruth Uris v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1979
- Donald E. Baker and Barbara M. Baker v. United StatesCourt of Appeals for the Eighth Circuit · 1972
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