Lewis v. Commissioner
United States Tax Court
In 1956, petitioner, who owned 49.5 percent of the stock of a corporation and whose sons owned the remaining stock, entered into an agreement with the corporation for the redemption of his stock over a period of years. After the agreement, he remained an officer and director of the corporation, but he received no compensation from the corporation, performed no services for it, and exercised no influence over its affairs.
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In 1956, petitioner, who owned 49.5 percent of the stock of a corporation and whose sons owned the remaining stock, entered into an agreement with the corporation for the redemption of his stock over a period of years. After the agreement, he remained an officer and director of the corporation, but he received no compensation from the corporation, performed no services for it, and exercised no influence over its affairs. He reported the profit from the redemption of his stock as capital gain in his income tax returns for 1956-61. Held, the payments in exchange for petitioner's stock were not…
1Opinion of the Court
Tannenwald, Judge:
The respondent determined deficiencies in petitioners’ income tax in the amounts of $1,596.87 for 1959, $1,701.45 for 1960, and $1,703.52 for 1961. The only question remaining is whether the proceeds of a redemption of stock shall be treated as capital gain or as a dividend. All other adjustments have been settled by stipulation and will be reflected in a Rule 50 computation.
FINDINGS OF FACT
Some of the facts are stipulated and are found accordingly.
Perry S. Lewis and Esther Lewis are husband and wife residing in Crawfordsville, Ind. They filed joint income tax returns on a…
2Cases cited23 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Glenn Weible and Patricia Weible v. United StatesCourt of Appeals for the Ninth Circuit · 1957
- Cary v. CommissionerUnited States Tax Court · 1963
- Eva D. Bradbury v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1962
- Decker v. CommissionerUnited States Tax Court · 1959
18 more not listed; retrieve them via the Exa API.
3Cited by36 opinions
- Dunn v. CommissionerUnited States Tax Court · 1978
- Herbert A. Dunn and Georgia E. Dunn v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Beatrice Levin v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1967
- Estate of Lammerts v. CommissionerUnited States Tax Court · 1970
31 more not listed; retrieve them via the Exa API.