Rushing v. Commissioner
United States Tax Court
1. Held, a sole shareholder of two corporations did not receive a constructive dividend when one corporation advanced funds to the other. 2. Held, further, petitioners did not realize additional gain when they sold certain notes evidencing loans to corporations whose stock petitioners sold in the same transactions. 3. Held, further, certain disputed amounts are not includable by petitioners in their computations of "gross profit" and "total contract price" under sec. 453,…
Read the full summary
1. Held, a sole shareholder of two corporations did not receive a constructive dividend when one corporation advanced funds to the other. 2. Held, further, petitioners did not realize additional gain when they sold certain notes evidencing loans to corporations whose stock petitioners sold in the same transactions. 3. Held, further, certain disputed amounts are not includable by petitioners in their computations of "gross profit" and "total contract price" under sec. 453, I.R.C. 1954. 4. Held, further, petitioners failed in their burden of proof to show that they did not receive certain…
1Opinion of the Court
OPINION
The first issue is whether W. B. and Mozelle Rushing received constructive dividends of'$62,892.40 in 1962 and $2,900 in 1963. Respondent’s position is that petitioners constructively received these amounts when L.C.B. advanced such amounts to Briercroft. Respondent premises his argument on the theory that the advances should be treated as contributions to capital rather than bona fide debt.
For purposes of this decision, it is unnecessary for us to decide whether the advances were bona fide debt. The test is whether the advances from L.C.B. to Briercroft were primarily to benefit…
2Cases cited10 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Challenge Mfg. Co. v. CommissionerUnited States Tax Court · 1962
- Edgar S. Idol, Katherine G. Idol, and Speedway Transports, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
5 more not listed; retrieve them via the Exa API.
3Cited by119 opinions
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Palmer v. CommissionerUnited States Tax Court · 1974
- Charles A. Sammons, Individually, and Estate of Rosine S. Sammons, Deceased, Charles A. Sammons, Independent v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1973
- Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
- PPG Indus., Inc. v. CommissionerUnited States Tax Court · 1970
114 more not listed; retrieve them via the Exa API.