Enoch v. Commissioner
United States Tax Court
Herbert Enoch desired to purchase the Gloria Homes, an apartment complex consisting of 423 apartments. Gloria Homes was owned by R.R.R., Inc., a corporation which had only 20 shares of stock issued and outstanding. Ten of these shares were owned by Simons, an individual, and the remaining 10 were owned by Sunrise Mining, a corporation which was 100-percent controlled by Simons.
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Herbert Enoch desired to purchase the Gloria Homes, an apartment complex consisting of 423 apartments. Gloria Homes was owned by R.R.R., Inc., a corporation which had only 20 shares of stock issued and outstanding. Ten of these shares were owned by Simons, an individual, and the remaining 10 were owned by Sunrise Mining, a corporation which was 100-percent controlled by Simons. The sales price for Gloria Homes was approximately $ 1,500,000. Enoch financed the purchase of the apartments in the following manner: (1) He invested in R.R.R. approximately $ 75,000 of his own capital; (2) he caused…
1Opinion of the Court
Fat, Judge:
The respondent determined tbe following deficiencies in, and additions to, tbe petitioners’ income tax for the taxable years 1962, 1968, 1964, and 1965:
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Concessions having been made by both parties, tbe issues remaining for decision are:(1) Whether Herbert Enoch received a constructive dividend when his alleged personal and unconditional obligation to acquire all 20 shares of E,.R,.R., Inc., was satisfied by appropriating the assets of the newly acquired corporation.(2) Whether Enoch received a constructive dividend when assets of R.R.R. were used to repay an alleged…
2Cases cited41 opinions
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- Douglas v. WillcutsSupreme Court of the United States · 1935
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