King v. Commissioner
United States Tax Court
Mason & Dixon, a motor carrier of freight, was the sole shareholder of Interstate, Motorways, and Regal. For 5 years prior to Oct. 4, 1963, the only income of the subsidiaries was derived from the rental of motor freight terminals to their parent on a net lease basis. Held: The distribution of the stock of Interstate, Motorways, and Regal to its shareholders (the petitioners) by Mason & Dixon on Oct. 4, 1963, constitutes a taxable dividend.
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Mason & Dixon, a motor carrier of freight, was the sole shareholder of Interstate, Motorways, and Regal. For 5 years prior to Oct. 4, 1963, the only income of the subsidiaries was derived from the rental of motor freight terminals to their parent on a net lease basis. Held: The distribution of the stock of Interstate, Motorways, and Regal to its shareholders (the petitioners) by Mason & Dixon on Oct. 4, 1963, constitutes a taxable dividend. The subsidiaries were not engaged in the active conduct of a trade or business during the 5-year period prior to the date of distribution. Sec. 355(b),…
1Opinion of the Court
E. Ward King and Myrtle C. King, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
King v. Commissioner
Docket Nos. 4084-68 -- 4097-68
United States Tax Court
55 T.C. 677; 1971 U.S. Tax Ct. LEXIS 195;
January 28, 1971, Filed
Decisions will be entered for the respondent.
Mason & Dixon, a motor carrier of freight, was the sole shareholder of Interstate, Motorways, and Regal. For 5 years prior to Oct. 4, 1963, the only income of the subsidiaries was derived from the rental of motor freight terminals to their parent on a net lease basis. Held: The distribution of the stock of…
2Cases cited23 opinions
- Hazard v. CommissionerUnited States Tax Court · 1946
- Lagreide v. CommissionerUnited States Tax Court · 1954
- Fackler v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1943
- Coady v. CommissionerUnited States Tax Court · 1960
- Fackler v. CommissionerUnited States Board of Tax Appeals · 1941
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