Drachman v. Commissioner
United States Tax Court
Petitioners owned 37 out of 345 shares of common stock of a corporation. At the beginning of 1948 the stock had some value. Petitioners were also members of a partnership which in order to protect its goodwill was forced in August 1948 to advance $ 10,000 to the corporation after it had become insolvent. The partnership was given the standing of a general creditor, and the creditors at that time hoped to recover the full amount of their claims.
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Petitioners owned 37 out of 345 shares of common stock of a corporation. At the beginning of 1948 the stock had some value. Petitioners were also members of a partnership which in order to protect its goodwill was forced in August 1948 to advance $ 10,000 to the corporation after it had become insolvent. The partnership was given the standing of a general creditor, and the creditors at that time hoped to recover the full amount of their claims. Stock was also issued to the members of the partnership in order that the creditors might obtain control of the corporation. By the end of 1948 the…
1Opinion of the Court
OPINION.
Bruce, Judge:
Prior to 1948 petitioners were the owners of 37 out of 345 shares of common stock of a corporation known as Better Homes, Inc. They were also members of a partnership which in order to protect its goodwill was forced in August 1948 to advance $10,000 to the corporation after it had become insolvent. The partnership was given the standing of a general creditor, and at that time the creditors hoped to recover the full amount of their claims. For the sole purpose of placing the creditors in control of the corporation, the members of the partnership received in 1948 100…
2Cases cited8 opinions
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Schnitzer v. CommissionerUnited States Tax Court · 1949
- Bart v. CommissionerUnited States Tax Court · 1954
- Glendinning, McLeish & Co. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1932
- Dunn & McCarthy, Inc. v. CommissionerCourt of Appeals for the Second Circuit · 1943
3 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- American Processing and Sales Company v. The United StatesUnited States Court of Claims · 1967
- Blum v. CommissionerUnited States Tax Court · 1972
- Alleghany Corp. v. CommissionerUnited States Tax Court · 1957
- Roussel v. CommissionerUnited States Tax Court · 1961
- Nye v. CommissionerUnited States Tax Court · 1968
18 more not listed; retrieve them via the Exa API.