Cloutier v. Commissioner
United States Tax Court
Petitioners were shareholders of a corporation which distributed cash and property to them during the taxable years 1948 and 1949. The fair market value of the property distributed in each year exceeded both its adjusted basis to the corporation and the total accumulated and current earnings or profits of the corporation for each year.
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Petitioners were shareholders of a corporation which distributed cash and property to them during the taxable years 1948 and 1949. The fair market value of the property distributed in each year exceeded both its adjusted basis to the corporation and the total accumulated and current earnings or profits of the corporation for each year. However, the adjusted basis of the property distributed during 1948 was greater than the corporation's earnings or profits, while that of the property distributed during 1949 was less. Held, the total fair market value of the distributions made during each year…
1Opinion of the Court
OPINION.
FisheR, Judge:
Respondent determined deficiencies in income tax of the petitioners as follows:
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The issues involved in the instant case concern the effect upon shareholders for tax purposes of (1) a distribution to them by a corporation of cash and appreciated property of a total fair market value in excess of the corporation’s total accumulated and current earnings or profits where the adjusted basis to the corporation of the distributed property is greater than such total earnings or profits; and (2) a distribution of appreciated property of a fair market value in excess…
2Cases cited13 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Lynch v. HornbySupreme Court of the United States · 1918
- Peabody v. EisnerSupreme Court of the United States · 1918
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- Gross v. CommissionerUnited States Tax Court · 1955
8 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- District of Columbia v. Beatrice W. OppenheimerCourt of Appeals for the D.C. Circuit · 1962
- Weaver v. CommissionerUnited States Tax Court · 1956
- Cox v. CommissionerUnited States Tax Court · 1982
- Cloutier v. CommissionerUnited States Tax Court · 1955
- Cox v. CommissionerUnited States Tax Court · 1982
4 more not listed; retrieve them via the Exa API.