Cleveland v. Commissioner
United States Tax Court
Petitioners acquired the stock of a corporation and soon afterward caused it to complete or terminate its existing contracts and to sell its equipment. During this period they received four distributions which they contend are liquidating distributions. The company, however, was also seeking a very large contract which it later obtained and performed. Held: There was no real contraction of business or liquidation until the new contract had been performed.
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Petitioners acquired the stock of a corporation and soon afterward caused it to complete or terminate its existing contracts and to sell its equipment. During this period they received four distributions which they contend are liquidating distributions. The company, however, was also seeking a very large contract which it later obtained and performed. Held: There was no real contraction of business or liquidation until the new contract had been performed. Since the relation of the petitioners to the corporation was not changed, the distributions were essentially equivalent to dividends under…
1Opinion of the Court
Robert W. Cleveland and Anita H. Cleveland, Petitioners, v. Commissioner of Internal Revenue, Respondent. Royal E. Cleveland and Alvina D. Cleveland, Petitioners, v. Commissioner of Internal Revenue, Respondent
Cleveland v. Commissioner
Docket Nos. 85101, 85102
United States Tax Court
39 T.C. 657; 1963 U.S. Tax Ct. LEXIS 211;
January 10, 1963, Filed
Decisions will be entered for the respondent.
Petitioners acquired the stock of a corporation and soon afterward caused it to complete or terminate its existing contracts and to sell its equipment. During this period they received four distributions…
2Cases cited13 opinions
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Towers v. CommissionerUnited States Tax Court · 1955
- Boyle v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
- Heman v. CommissionerUnited States Tax Court · 1959
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
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