Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Articles 1 - 3 of 3

Full-Text Articles in Law

Discharge Of Corporate Indebtedness At Less Than Face Value Under The Internal Revenue Code, Harvey Mahlig Jan 1952

Discharge Of Corporate Indebtedness At Less Than Face Value Under The Internal Revenue Code, Harvey Mahlig

Cleveland State Law Review

Prior to 1939 whenever a corporation paid less than the face amount of an obligation in full satisfaction thereof, taxable income was realized to the extent of the difference. In 1939 paragraph (9) was added to Section 22 (b) of the InternalRevenue Code. Therein it was provided that there should not be included in the taxable income of a corporation the amount of income attributable to the discharge of any indebtedness as evidenced by a security, provided at the time of such discharge the corporation was in an unsound financial condition. In orderto obtain the relief provided, the corporation had …


Treasury Stock; A Corporate Anomaly, Harry Kotler Jan 1952

Treasury Stock; A Corporate Anomaly, Harry Kotler

Cleveland State Law Review

Treasury shares are an anomaly, since it has thus far appeared that they have been subjected to a doctrine of expediency, a doctrine of ascertaining their position and consequences only from the point of view of the specific problem at hand. They are assets for one purpose, but not assets for another. They are treated as existing for one purpose, but nonexistent for another. They appear, reappear and disappear. They have a fluidity which is uncommon in corporate law, where certainty, precision and definiteness are the keynotes. Because they offer to a corporation a singularly tempting opportunity to represent the …


Taxation; Deductibility Of Corporate Contributions To A Group Annuity Policy And An Employee's Trust, Daniel R. Mccarthy Jan 1952

Taxation; Deductibility Of Corporate Contributions To A Group Annuity Policy And An Employee's Trust, Daniel R. Mccarthy

Cleveland State Law Review

Discussion of Lincoln Electric Company v. Commissioner of Internal Revenue, 17 Tax Court 1600 (1952): The petitioner, a manufacturing company, paid the sum of $575,206.43 into a retirement annuity policy for its employees and contributed the sum of $1,000,000.00 to an employees' trust. Held: Such payments constituted ordinary and necessary business expenses and were deductible under section 23 (a) (1)(A) of the Internal Revenue Code.