Sackstein v. Commissioner
United States Tax Court
Capital Contributions or Cost of Goods Sold. -- Amounts paid by a stockholder-customer to a corporation were capital contributions by the stockholder, not a part of the cost of goods purchased by him from the corporation, and not ordinary and necessary expenses.
1Opinion of the Court
OPINION.
MuRDOck, Judge-.
There is no adequate explanation in the record for the different amounts, $7,419.09, $7,219.09, and $7,100, shown in the findings, all of which relate to the same thing.
Usually contributions by stockholders to their corporation are regarded for tax purposes and other purposes as capital contributions increasing the cost of the stock, which cost will then be compared with the amount realized when the stock is ultimately disposed of to determine gain or loss. Harry E. Lutz, 2 B. T. A. 484; John G. Paxton, 7 B. T. A. 92. Counsel for the Commissioner stated at the…
2Cited by31 opinions
- Dobkin v. CommissionerUnited States Tax Court · 1950
- Western Wine & Liquor Co. v. CommissionerUnited States Tax Court · 1952
- Commissioner v. FinkSupreme Court of the United States · 1987
- Downer v. CommissionerUnited States Tax Court · 1967
- Bachrach v. CommissionerUnited States Tax Court · 1952
26 more not listed; retrieve them via the Exa API.