Greenwood v. Commissioner
United States Board of Tax Appeals
The legal distinction between a corporation and its stockholders can not be disregarded merely because the entire capital stock of the corporation is owned by one stockholder; and no part of the earnings or surplus of a corporation can accrue to its sole stockholder as such, other than by way of dividends.
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The legal distinction between a corporation and its stockholders can not be disregarded merely because the entire capital stock of the corporation is owned by one stockholder; and no part of the earnings or surplus of a corporation can accrue to its sole stockholder as such, other than by way of dividends. The gain realized by the sole stockholder of a corporation who receives its entire assets upon dissolution and liquidation is subject to tax under section 201(c) of the Revenue Act of 1918 at both the normal and surtax rates, and it is immaterial that such assets were distributed in kind…
1Opinion of the Court
*293OPINION.
Marquette :
This appeal presents two questions for determination: First, whether the taxpayer is taxable at all upon the distribution in liquidation to him as sole stockholder of the entire assets of the J. K. Greenwood Co., and, second, if he is taxable, in what manner the distribution to him should be taxed.
The facts herein show that the taxpayer acquired the entire capital stock of the predecessor to the J. K. Greenwood Co. on April 9,1918, and it has been stipulated that the value on that date of the capital stock was the same as the .March 1, 1913, value and the book value. The…
2Cases cited4 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. PhellisSupreme Court of the United States · 1921
- Cullinan v. Walker, Collector of Internal RevenueSupreme Court of the United States · 1923
- Trimble v. American Sugar Refining Co.New Jersey Court of Chancery · 1901
3Cited by10 opinions
- Atlantic City Electric Company v. United StatesUnited States Court of Claims · 1958
- Hudlow v. CommissionerUnited States Tax Court · 1971
- Monk v. CommissionerUnited States Board of Tax Appeals · 1933
- Woodard v. CommissionerUnited States Board of Tax Appeals · 1934
- Burge v. CommissionerUnited States Board of Tax Appeals · 1926
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