Waldheim v. Commissioner
United States Tax Court
1. A corporation having net earnings during the taxable year made cash distributions to its stockholders pro rata. The corporation had a deficit at the beginning of the year and would still have had a deficit at the end of the year even if no distributions to stockholders had been made. The net earnings for the year exceeded the cash distributions.
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1. A corporation having net earnings during the taxable year made cash distributions to its stockholders pro rata. The corporation had a deficit at the beginning of the year and would still have had a deficit at the end of the year even if no distributions to stockholders had been made. The net earnings for the year exceeded the cash distributions. Held, that the distributions were dividends within the meaning of section 115 (a) (2) of the Internal Revenue Code of 1939 and taxable to the stockholders as such. 2. In 1945 Helen Bienenstok surrendered to the corporation stock having a basis to…
1Opinion of the Court
OPINION.
Turner, Judge:
One issue which Stanley and Helen have in common is whether the cash distributions made pro rata by Waldheim & Company to its stockholders in 1945 and 1946 were dividends within the meaning of the statute. According to section 115 (a) of the Internal Revenue Code of 1939 a dividend “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 February 28, 1913 or (2) out of the earnings or profits of the taxable year (computed as of the close of the taxable year without…
2Cases cited7 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Willcuts v. Milton Dairy Co.Supreme Court of the United States · 1927
- Hadden v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1931
- Strake Trust v. CommissionerUnited States Tax Court · 1943
- Maguire v. CommissionerUnited States Tax Court · 1954
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Waldheim v. CommissionerUnited States Tax Court · 1956