Law Commons^™

Income Tax—Expenses Of Attending Tax Institute Held Deductible, Hubert J. Holler

Buffalo Law Review

Coughlin v. Commissioner, 203 F. 2d 307 (2d Cir. 1953).

Income Tax—Treasury Stock Dividends Held To Be Taxable, Victor C. Silverstein

Buffalo Law Review

Schmitt v. Commissioner, 20 T. C. No. 44 (May 14, 1953).

Section 112(B)(6): Benefit Or Burden?, Raymond Whiteaker

Vanderbilt Law Review

The general provision in the Internal Revenue Code pertaining to the liquidation of corporations is section 115 (c). Under this section gain or loss on a liquidation is recognized to the extent that the assets received in liquidation exceed or fail to exceed the basis of the share-holder's stock. An exception to this general rule, however, is provided by section 112(b) (6) whereby a parent may liquidate a subsidiary without recognizing any gain or loss on the liquidation if the statutory requirements are met.

The nonrecognition provision first appeared in the Revenue Act of 1935 as section 110 (a).' This …

Taxation - Federal Income Tax - Deductibility By An Employee Of Sum Paid In Settlement Of Claim Arising From His Operation Of Automobile Used In Company's Business, Richard B. Barnett S.Ed.

Michigan Law Review

Petitioner and one Elkins were employed by a corporation which they had organized to engage in the electrical contracting business. They furnished their own automobiles to transport men and material from job to job, and were reimbursed by the corporation for operating expenses. The corporation also paid for insurance and repairs of the automobiles. While Elkins was using petitioner's car to drive two employees to a job in progress, a collision occurred causing personal injuries to the two employees, who recovered a judgment against petitioner which he finally settled by payment of $4,000 in excess of the amount of the …

Public And Public Welfare Property Tax Exemption In West Virginia, Albert S. Abel

West Virginia Law Review

No abstract provided.

Taxation--Cash Basis To Accrual Basis--Inventory Included, J. M. H.

West Virginia Law Review

No abstract provided.

Taxation - Federal Income Tax - Exemplary Damages As Taxable Income To Recipient, Eliot Gerber S.Ed.

Michigan Law Review

Petitioner, a motion picture exhibitor, sued certain motion picture distributors under the private remedy provisions of the federal antitrust acts. Judgment was had against the distributors for treble damages. Upon failure of petitioner to report as income the amount recovered above its actual loss of profits, the Commissioner determined deficiencies in petitioner's income tax. Held, the amount recovered above actual loss of profits was exemplary damages and not taxable income. William Goldman Theatres, Inc., 19 T.C. 637 (1953).

Taxation - Federal Income Tax - Consequences To Seller And Buyer Of Covenant Not To Compete, Richard B. Barnett S.Ed.

Michigan Law Review

The owners of the entire capital stock of a newspaper business received an offer of $1,000,000 for their stock and a covenant not to compete with buyers for ten years. After the offer was accepted and the contract of sale drawn up, buyer asked for a clause in the contract evaluating the covenant not to compete at $50 a share and the stock at $150 a share in order to help him taxwise. The clause was accepted with little discussion. The sellers reported the entire proceeds of the sale on their income tax returns as long term capital gain, but …

Capital Gains And Losses Subsequent To Corporate Liquidation, E. Mcgruder Faris, Jr.

Washington and Lee Law Review

No abstract provided.

Taxation - Federal Income Tax-What Constitutes Accident Or Health Insurance Under Section 22(B)(5)-, Marvin O. Young

Michigan Law Review

Plaintiff brought this action to recover federal income tax paid by him for the year 1945 on a sum of $1800 which plaintiff received from his employer pursuant to a "free" sickness benefits plan which plaintiff's employer had in effect, claiming that this amount was excludable from gross income under section 22(b)(5) as "amounts received through accident or health insurance." Plaintiff's employer was an insurance company with authority to write health and accident insurance, and "free" protection was given to all full-time salaried home and branch office employees who could pass a satisfactory medical examination. Many ordinary features of a …

Taxation--Application For Refund, J. M. H.

West Virginia Law Review

No abstract provided.

Taxation—Prizes For Artistic Or Scholastic Accomplishments—Gifts Or Income?, Newman L. Dotson

Washington Law Review

P won $25,000 for the best symphony entered in a contest sponsored by a philanthropist. P composed his symphony during a three year period, 1936 to 1939, entered the contest and won the prize in 1947. The sponsor of the award derived no profit from the contest nor from P's participation in it. The Commissioner of Internal Revenue ruled that the entire award was taxable as income and under I.R.C. § 107(b), to be computed as though the award had been ratably received over the three year period ending with 1947. P filed a claim for refund on the ground …

Judicial Techniques In Combating Tax Avoidance, Ralph S. Rice

Michigan Law Review

There is no problem today more fundamental in federal tax law than the rationale (or lack of it) that underlies the conduct of the courts in striking down tax avoidance devices and refusing to recognize business arrangements which meet statutory requirements for tax saving but exude an odor piscatorial.

Taxation-Federal Income Tax-Constitutionality Of The Clifford Regulations, Robert G. Russell S.Ed.

Michigan Law Review

Taxpayer created a five year irrevocable trust on December 1, 1941 for the benefit of a charitable foundation. She retained a reversion in the corpus but disclaimed any right to income. She did not retain, directly or indirectly, any interim control over the corpus or income. On December 1, 1942 the term of the trust was extended to December 1, 1951. Taxpayer did not report the income of the trust in her return. The Commissioner assessed deficiencies for 1946 claiming that the trust was for a term of nine years and that under the new ten year rule, the income …

Taxation-Federal Income Tax-Payment To Lessee For Surrender Of Lease Taxable As Capital Gain, Theodore J. St. Antoine

Michigan Law Review

Taxpayer, a tenant in possession of premises under a lease, received a payment from the lessor to vacate and surrender the premises before the lease expired. The Tax Court decided that the payment was taxable only as a capital gain. On appeal, held, affirmed. Since the leasehold interest constituted property, its transfer by the lessee to the lessor was a sale of a capital asset under I.R.C., §117. Commissioner v. Golonsky, (3d Cir. 1952) 200 F. (2d) 72.

Taxation—Stockholder-Transferee Liability: Ordinary Or Capital Loss?, Jerome D. Adner

Buffalo Law Review

Arrowsmith v. Commissioner, 73 S. Ct. 71 (1952).

Tax Treatment Of Stockholders' Advances (How Thick Must Be A Thin Corporation), F. A. Lesourd

Washington Law Review

With higher corporate tax rates and more emphasis by the Treasury on taxing distributions to stockholders as dividends, the advantage in setting up stockholders' advances to a corporation as loans rather than as equity capital has become more marked. Many stockholders commencing risky, incorporated businesses would like to get their capital out of the corporation as soon as possible so as to minimize the risk of loss in the event business conditions should turn bad. A stockholder cannot receive a return of part of his equity capital without serious question as to his liability for tax on the distribution as …

The Taxation Of Corporate Surplus Accumulations, By James K. Hall (1952), Kenneth A. Cox

Washington Law Review

It is this provision of the tax laws which engages the attention of Dr. James K. Hall, Professor of Economics at the University of Washington, in this study prepared for the Joint Committee on the Economic Report. The result is a comprehensive and informative survey covering the basic purposes underlying Section 102, its history, its economic effects upon corporations within its orbit and upon the economy generally, the administration of the Section by the Bureau of Internal Revenue, its treatment by the courts, and the criticisms which have been leveled against it; together with proposals for its modification. Although designed …

Income Tax—Deductibility Of Legal Expenses, William S. Stinnette

Washington Law Review

P made a gift of 1,000 shares of stock to members of his family and paid the federal gift tax thereon. Thereafter P was notified by the Commissioner of Internal Revenue of a gift tax deficiency of $145,276.50. Through his attorney, P secured a settlement of the deficiency for $15,612.75. He did not deduct the legal expenses of the gift tax controversy from his gross income but later claimed an income tax refund on the ground that the legal fee should have been deducted under Int. Rev. Code § 23 (a) (2). The District Court held for P. The Court …

Income Tax—Funds Received By Extortion As Income, Eleanor H. Edwards

Washington Law Review

T was an associate of X during prohibition when they were bootlegging liquor. After the partnership split up, T demanded money from X. When T threatened the lives of X and his family, X paid T $250,000. Held: The extorted funds are taxable to T as income since they were obtained under a "semblance of a bona fide claim of right" and in effect, without oblgation to repay since X was not likely ever to press demand for a return of the money. Ruthin v. United States, 343 U.S. 130 (1952).

Some Notes On Comparing Tax Accounting And General Accounting, Arthur R. Cerio

Cleveland State Law Review

Many problems of taxation are caused by the differences between tax accounting principles and generally accepted accounting principles. Despite years of extensive litigation, the question of the timing of income or deductions is difficult to determine. Usually no additional revenue is realized by these conflicts in principles; they merely cause a shift of revenue between the years.

The Western Hemisphere Trading Corporation; In Outline, Samuel Laderman

Cleveland State Law Review

One of the last frontiers of effective tax reduction exists in the exporting field. This device was specifically created by Congress to enable American corporations trading in foreign countries within the Western Hemisphere to compete with foreign corporations and has been approved by the Commissioner of Internal Revenue. There is no federal law providing for the incorporation of Western Hemisphere Trade Corporations. The corporations are organized under applicable state law and qualify as Western Hemisphere Trade Corporations.

Personal Holding Companies And Gross Income, Harvey Mahlig

Cleveland State Law Review

There are many small corporations, the ownership o fwhich is in the hands of a family group or a few individuals, which are susceptible to personal holding company rules. These require a careful analysis of stock ownership and gross income. While it may not have been the intention of an individual or of a group to form a personal holding company, circumstances may arise during a year which would qualify the corporation as one. A change in stock ownership, a change in the type of gross income or a change in the amount of gross income could very well transform …

Taxation-Federal Income Tax-Deductibility Of Legal Fees Incurred In Contesting Gift Tax Deficiency, Richard B. Barnett S.Ed.

Michigan Law Review

Petitioner gave shares of stock in a closely held family corporation to his wife and children. After paying the federal gift tax, he was notified by the Commissioner of a deficiency of $145,276. The case was eventually settled by payment of $15,612. In this controversy petitioner incurred legal expenses which he sought to deduct on his income tax return under section 23(a)(2) of the Internal Revenue Code. When his claim was disallowed by the Commissioner, this suit was brought for refund. Held, on certiorari, this expenditure was not "for the production or collection of income'' nor incurred in the …

Federal Taxation: Regulation Through Taxation--Bookie Tax, John K. Leopard

Kentucky Law Journal

No abstract provided.

Taxation: Distribution In Kind Of Corporate Assets--United States V. Lynch, James F. Hoge

Kentucky Law Journal

No abstract provided.

Liability Of Fiduciary For Decedent's Unpaid Federal Taxes And That Of Transferee For Federal Taxes, Joseph Berman, Daniel S. Berman

Kentucky Law Journal

No abstract provided.