Georgia Eng'g Co. v. Commissioner
United States Board of Tax Appeals
1. Held that certain distributions authorized by the formal action of the petitioner's directors and credited to the accounts of the respective stockholders were dividends, and that the unpaid portion of such dividends was properly excluded from petitioner's invested capital. 2. Certain indebtedness owing to the petitioner and charged off in 1921 held not to have been ascertained to be worthless in that year; held, further, that the debt was ascertained to be worthless in…
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1. Held that certain distributions authorized by the formal action of the petitioner's directors and credited to the accounts of the respective stockholders were dividends, and that the unpaid portion of such dividends was properly excluded from petitioner's invested capital. 2. Certain indebtedness owing to the petitioner and charged off in 1921 held not to have been ascertained to be worthless in that year; held, further, that the debt was ascertained to be worthless in 1923 and the previous charge-off remaining on the books is sufficient to entitle petitioner to the deduction in 1923.
1Opinion of the Court
*541OPINION.
Trammell:
The issues involved in this proceeding are (1) whether' the petitioner is entitled to have included in its invested capital for 1920 and 1921 the amount of the unpaid distributions which had been credited to the stockholders’ accounts but which, pursuant to the resolution of December 29, 1921, were credited back to surplus; (2) whether the petitioner is entitled to a deduction for 1921 of $115,000 representing the portion of the Eockmart Co.’s indebtedness that was disallowed by the respondent as a deduction for bad debts and (3) if the $115,000 is not an allowable deduction…
2Cases cited6 opinions
- Edwards v. DouglasSupreme Court of the United States · 1925
- Mason v. RoutzahnSupreme Court of the United States · 1927
- Spencer v. LoweCourt of Appeals for the Eighth Circuit · 1912
- Northwestern Marble & Tile Co. v. CarlsonSupreme Court of Minnesota · 1912
- Quinn v. Quinn Manufacturing Co.Michigan Supreme Court · 1918
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Milford Trust Co. v. United StatesDistrict Court, D. Connecticut · 1945
- Georgia Eng'g Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Nat'l Bank of Commerce v. CommissionerUnited States Board of Tax Appeals · 1939