John Gerber Co. v. Commissioner
United States Board of Tax Appeals
1. A dividend of $125 a share was declared on the last day of a fiscal year, but credited to the accounts of stockholders in the following and taxable fiscal year.
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1. A dividend of $125 a share was declared on the last day of a fiscal year, but credited to the accounts of stockholders in the following and taxable fiscal year. In accordance with long established custom the dividend so credited was withdrawable at the pleasure and without restriction by the stockholders except where the stockholder was indebted to the petitioner, in which case the indebtedness was considered liquidated to the extent of the dividend credit. $4,000 was offset against indebtedness and $21,000 withdrawn in cash during the taxable year. Held, that the dividend of $25,000 was…
1Opinion of the Court
OPINION.
Arnoed:
The Commissioner determined a deficiency in income tax for the fiscal year ended January. 31,1937, in the amount of $3,653.89. In determining the taxable net income of petitioner the Commissioner made several adjustments, which resulted in an increase of net income from $69,075.64 to $74,015.46. These adjustments are not in dispute. In his computation of surtax on undistributed profits the Commissioner disallowed $19,009.92 of a claimed dividend paid credit under the provisions of section 27 (a) and (g) of the Revenue Act of 1936.1 The petitioner alleges error in this respect.…
2Cited by16 opinions
- Estate of Sweeney v. CommissionerUnited States Tax Court · 1980
- Rhodes-Jennings Furniture Co. v. CommissionerUnited States Tax Court · 1950
- Boeing v. CommissionerUnited States Board of Tax Appeals · 1942
- Daniels v. CommissionerUnited States Tax Court · 1957
- Estate of Ginsberg v. CommissionerUnited States Tax Court · 1958
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