Barbourville Brick Co. v. Commissioner
United States Tax Court
Payment by petitioner corporation to its majority stockholder, the widow of its deceased president, pursuant to corporate resolution adopted after his death, held, on the facts, to be a dividend not deductible by petitioner.
1ConcurrenceBruce, J.
I agree with the majority that the payment in question is not deductible by petitioner. I am not at all satisfied, however, that the payment in question constituted a dividend and, accordingly, do not wish to be understood as agreeing with the reasons adopted by the majority. I would deny the deduction for the reasons hereinafter discussed.
On its income tax return for the taxable year 1954, petitioner claimed a deduction in the amount of $5,100 for a “gratuity to Mrs. J. R. Bacon.”
Respondent disallowed the deduction claimed for the stated reason that “the amount of $5,100.00 claimed as a…
2Cases cited13 opinions
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
- Commissioner of Internal Revenue v. Fifth Avenue Coach Lines, Inc., Fifth Avenue Coach Lines, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Fifth Ave. Coach Lines,Inc. v. CommissionerUnited States Tax Court · 1959
- Flood v. United StatesCourt of Appeals for the First Circuit · 1943
- I. Putnam, Inc. v. CommissionerUnited States Tax Court · 1950
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