Lincoln Nat'l Bank v. Commissioner
United States Board of Tax Appeals
A distribution to the principal shareholders of a corporation not strictly in proportion to their holdings, is held to be within the statutory definition of a dividend, and the fact that it was referred to as a gift in the corporate resolution authorizing it, together with oral testimony of other principal shareholders and directors that the amount distributed to one of them (the petitioner) was prompted by their gratitude for his service in preserving an estate of which…
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A distribution to the principal shareholders of a corporation not strictly in proportion to their holdings, is held to be within the statutory definition of a dividend, and the fact that it was referred to as a gift in the corporate resolution authorizing it, together with oral testimony of other principal shareholders and directors that the amount distributed to one of them (the petitioner) was prompted by their gratitude for his service in preserving an estate of which they were beneficiaries - a reason applicable to petitioner, but not the other distributees - is insufficient to support…
1Opinion of the Court
*1307OPINION.
Sternhagen:
The respondent has held that the 1,507 shares of Emerson stock were received by decedent as a dividend, and that their agreed value was income free from normal tax and subject to surtax. Petitioner insists that they were received as a gift, and therefore excluded from decedent’s gross income by virtue of section 213(b) (3).
There is testimony by Floyd P. and Ennalls Waggaman that the decedent had devoted himself earnestly and successfully to preserving and expanding the estate of John F. Waggaman, their father, of which they were beneficiaries, and that for his long…
2Cited by4 opinions
- Cohen v. CommissionerUnited States Board of Tax Appeals · 1933
- Schuler v. CommissionerUnited States Board of Tax Appeals · 1933
- Greenspun v. CommissionerUnited States Tax Court · 1944
- Lincoln Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1931