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Articles 721 - 750 of 988

Full-Text Articles in Tax Law

Corporations-Residence Of Domestic Corporation For Purpose Of Venue Established By Location Fixed In Articles Of Incorporation, John M. Veale S.Ed. May 1948

Corporations-Residence Of Domestic Corporation For Purpose Of Venue Established By Location Fixed In Articles Of Incorporation, John M. Veale S.Ed.

Michigan Law Review

M Village in which D corporation conducted its business was partially in X County and partially in Y County. The county line bisected the village close to D's location, and in filing its articles of incorporation D had designated M Village, Y County as its residence. In fact, D's property and office were located is X County and when P began a suit against it in Y County, D moved to dismiss upon the ground that under the applicable statute D could be sued only in the county where it resided. P argued that D had at least …


Taxation - I.R.C. Section 115 (G) -Transaction Equivalent To Taxable Dividend, Bayard E. Heath S.Ed. May 1948

Taxation - I.R.C. Section 115 (G) -Transaction Equivalent To Taxable Dividend, Bayard E. Heath S.Ed.

Michigan Law Review

P and B owned all the outstanding shares of X Corporation. In 1937 P purchased B's shares and gave as consideration his notes bearing maturity dates varying from one to ten years. Two years later P transferred these shares to X Corporation, to be held as treasury stock, in return for the corporation's promise to discharge P's obligations to B as they matured. Pursuant to this agreement X paid $5,000 to B in discharge of one of P's notes. The commissioner treated this payment as a taxable dividend to P under section 115 (g) of the Internal …


Some Problems In Special Assessment District Obligations, Irvin Long May 1948

Some Problems In Special Assessment District Obligations, Irvin Long

Michigan Law Review

The question of the jurisdiction of a board or officer authorized to construct a local improvement and levy special assessments therefor has always been troublesome, and is particularly so when bonds or other obligations are issued in anticipation of the collection of such assessments. A vast amount of litigation has occurred in Michigan in recent years over drain district assessments, and bonds which such districts have issued. While this is of primary interest to Michigan lawyers and investors in public securities, many of the questions involved seem to be of such a general nature, so far as special assessment procedure …


Taxation-Deductions For Partial Worthlessness Of A Debt, John M. Veale S.Ed. Apr 1948

Taxation-Deductions For Partial Worthlessness Of A Debt, John M. Veale S.Ed.

Michigan Law Review

Taxpayer was accustomed to loan money to a related corporation on open accounts. The debtor consistently lost money and became bankrupt in 1938. Thereupon taxpayer wrote off the whole debt using it as a deduction from 1938 income. The commissioner assessed a deficiency on the theory that the taxpayer, by a subordination agreement made with another creditor in 1931, had recognized the then balance to be worthless. Hence, he argued, advances made after that date were a separate debt; therefore taxpayer had lost the right to deduct the debt due in 1931 for failure to take it in the year …


Taxation -Family Partnerships-Capital "Originating" With The Wife, Bayard E. Heath S.Ed. Mar 1948

Taxation -Family Partnerships-Capital "Originating" With The Wife, Bayard E. Heath S.Ed.

Michigan Law Review

In 1937 petitioner, P, gave his wife and sister each $2500 worth of stock in X Corporation. In 1940 he and A formed a partnership unrelated to the business of X corporation. Later in the year they decided to incorporate this partnership. Meanwhile, P desired to obtain all of the stock of X in order to take advantage of an opportunity to sell it to other interests at a substantial profit. His wife and sister gave him their shares in X for his promise to give them shares in the new corporation formed from the partnership of P and …


Constitutional Law-Tax Exemption Contract, Grétel Schinnerer Mar 1948

Constitutional Law-Tax Exemption Contract, Grétel Schinnerer

Michigan Law Review

A charter granted in 1863 by the State of Georgia to the Atlantic Coast Line Railroad Company provided as follows: "The stock of said company shall be subject to a tax not exceeding ½ per cent per annum on the net proceeds of its investments." In 1931, the Georgia legislature levied a tax of 5½ per cent on corporate net income. The railroad brought an action seeking to have an assignment under this tax declared invalid, on the theory that the tax as applied to the plaintiff railroad violated the contract clause of the federal Constitution. The Georgia Supreme Court …


Taxation--Income Tax--Nondeductible Losses--Intra-Family Transactions, Bayard E. Heath S.Ed. Feb 1948

Taxation--Income Tax--Nondeductible Losses--Intra-Family Transactions, Bayard E. Heath S.Ed.

Michigan Law Review

Petitioner managed his wife's as well as his own estate. On several occasions, to establish tax losses, he ordered his broker to sell certain stock on the Stock Exchange for his account, and then to buy the same number of shares of the same stock for his wife's account. Petitioner claimed losses derived from these sales when filing his income tax return, but the commissioner disallowed these deductions on the authority of section 24 (b) of the Internal Revenue Code. On the taxpayer's application to the Tax Court, it held section 24 (b) inapplicable. The circuit court of appeals reversed …


Some General Aspects Of Michigan Community Property Law, William E. Burby Jan 1948

Some General Aspects Of Michigan Community Property Law, William E. Burby

Michigan Law Review

The common law, in recognition of the fact that one spouse is entitled to some economic security in the property of the other spouse, evolved the interests known as dower and curtesy. These interests, of course, apply only with respect to land. The husband enjoyed an additional economic advantage that came from the management and control of his wife's property. This latter advantage has disappeared with the advent of Married Women's Property Acts that confer upon married women the right to manage their own estates. Statutes have also expanded on the concept of dower and curtesy by providing for a …


Taxation-Income Tax-Exempt Reorganizations-Recapitalization As Device For Distributing Earnings, Bayard E. Heath S.Ed. Dec 1947

Taxation-Income Tax-Exempt Reorganizations-Recapitalization As Device For Distributing Earnings, Bayard E. Heath S.Ed.

Michigan Law Review

Petitioner owned more than three-fourths of the stock in a corporation whose shares had a par value of $100. Except for one share, his wife owned the remainder. Under a plan of recapitalization the stockholders received in exchange for each old share, five shares of no par stock with a stated value of $60 per share plus a portion of $400,000 worth of callable debentures issued by the corporation. At the time of this exchange the earned surplus of the corporation exceeded $850,000. The commissioner held that the full value of the debentures received was chargeable to the taxpayer as …


Some Income Tax Aspects Of Community Property Law, Paul R. Trigg, Jr. Nov 1947

Some Income Tax Aspects Of Community Property Law, Paul R. Trigg, Jr.

Michigan Law Review

The recent enactment of community property law in Michigan and other states has created new problems for lawyers. Not the least of these is the question of the income tax consequences which flow from the existence of a community between the spouses. Nor is this the type of problem which can be shrugged off by reference to tax counsel. Local community property law and federal .income tax law are too closely enmeshed to be intelligently divided. No authority is needed for the statement that recently enacted community property laws are a product of high surtaxes. At the same time, these …


Constitutional Law-Taxation-Gross Receipts Taxes In Relation To Interstate Commerce-Freeman V. Hewit, Irving Slifkin S.Ed. Nov 1947

Constitutional Law-Taxation-Gross Receipts Taxes In Relation To Interstate Commerce-Freeman V. Hewit, Irving Slifkin S.Ed.

Michigan Law Review

The scope of state taxation of interstate commerce has been redefined in two recent Supreme Court cases involving the application of state gross receipts taxes. In Freeman v. Hewit and Joseph v. Carter and Weekes Stevedoring Co., the Court discarded the cumulative burdens test, which for the past eight years had served as the basis for determining the extent of state taxation of interstate commerce, and readopted the direct and indirect burden test.


Recent Books, Michigan Law Review Jun 1947

Recent Books, Michigan Law Review

Michigan Law Review

This department undertakes to note or review briefly current books on law and matters closely related thereto.


Taxation-Mitigation Of The Statute Of Limitation And The Doctrine Of Recoupment, Eugene H. Lattin S.Ed. Jun 1947

Taxation-Mitigation Of The Statute Of Limitation And The Doctrine Of Recoupment, Eugene H. Lattin S.Ed.

Michigan Law Review

Excise taxes on the sale of batteries were illegally collected from taxpayer from April, 1919 to April, 1926. In 1926 taxpayer filed a claim for refund for taxes paid between 1922 and 1926. Refund for the payments made earlier was barred by the statute of limitations. In 1935 the refund was received, and it was taxed as income by the commissioner. In a suit by the taxpayer to recover payment of the assessment, the lower court permitted recoupment, against the income tax deficiency, of the amount of excise taxes illegally collected between 1919 and 1922. Held, reversed. The recoupment …


Recent Books, Michigan Law Review May 1947

Recent Books, Michigan Law Review

Michigan Law Review

This department undertakes to note or review briefly current books on law and matters closely related thereto.


Significant Developments In The Law Of Federal Taxation, 1941-1947: Ii, Paul G. Kauper May 1947

Significant Developments In The Law Of Federal Taxation, 1941-1947: Ii, Paul G. Kauper

Michigan Law Review

The 1941 Revenue Act carried forward the rather complex normal tax structure prescribed by the 1940 Revenue Act and in addition introduced a corporate surtax rate schedule. The normal tax rates were increased to absorb the 10% defense tax previously imposed as a separate tax and also a very slight increase in the rates applicable to corporations with a normal-tax net income of less than $38,461.54. As so altered the normal tax amounted to 24% in the case of corporations having normal-tax net income over $38,461.54, and in the case of corporations having no more than this amount of normal-tax …


Significant Developments In The Law Of Federal Taxation, 1941-1947: I, Paul G. Kauper Apr 1947

Significant Developments In The Law Of Federal Taxation, 1941-1947: I, Paul G. Kauper

Michigan Law Review

A preliminary word on the scope of this review is in order. Since this was originally prepared as one of a series designed to acquaint returning veterans with legal developments during the war period, the year 1941 has been chosen as the starting point, and the review carried forward from that point through to date. The review covering this period is limited to significant developments in the area of federal taxation, with emphasis upon the estate, gift, and income taxes.


Taxation-Excess Profits-General Relief Under Section 722 I. R. C, John W. Riehm, Jr. S.Ed. Apr 1947

Taxation-Excess Profits-General Relief Under Section 722 I. R. C, John W. Riehm, Jr. S.Ed.

Michigan Law Review

Even the most casual observer of modern business practices will accede to the general proposition that the most accurate reflection of market value for many commodities can be found in documentary sources. This is particularly true of those commodities of an homogeneous character which are sold in well-organized markets characterized by price uniformity and free access to price information. Of them, it may well be said that no more satisfactory evidence of market value than the newspaper market reports can be found, barring the possibility of personal observation of "the board" at the market itself. However, the average businessman will …


Executors And Administrators-Priority Of Payment Of United States Claims, E. M. Deal S.Ed. Mar 1947

Executors And Administrators-Priority Of Payment Of United States Claims, E. M. Deal S.Ed.

Michigan Law Review

When decedent died in 1940, his personal estate was consumed by the widow's exemption and expenses of administration, leaving only a one-sixth interest in certain real estate formerly owned by his deceased father. Proceedings to partition this property resulted in a sum of $2,306.17 payable to decedent's widow, subject to the payment of his debts. The executors of one Davidson who had obtained a $24,588.00 judgment against decedent in 1933 claimed the entire fund as did the United States under tax liens entered in 1940 and 1941 of $2,202.89 and $8,904.67. The government based its claim on section 3466 of …


Constitutional Law-Interstate Commerce-Congressional Consent To Discriminatory State Taxation, George Brody S.Ed. Jan 1947

Constitutional Law-Interstate Commerce-Congressional Consent To Discriminatory State Taxation, George Brody S.Ed.

Michigan Law Review

South Carolina statutes imposed upon foreign insurance companies a tax of 3 per cent of the aggregate premiums received from business done within the state, without reference to its interstate or local character, as a condition to receiving a certificate of authority to do business within the state. No similar tax was imposed upon domestic insurance companies. The Prudential Life Insurance Company, a New Jersey corporation doing business in South Carolina, refused to pay, contending that since it was a discriminatory tax it was unconstitutional. Furthermore, Prudential challenged the power of Congress to consent to the levying of such discriminatory …


Taxation-Administrative Law-Judicial Review Of Determinations Of United States Tax Court-The Rule Of The Dobson Case, Rosemary Scott S.Ed. Dec 1946

Taxation-Administrative Law-Judicial Review Of Determinations Of United States Tax Court-The Rule Of The Dobson Case, Rosemary Scott S.Ed.

Michigan Law Review

In the field of administrative tax law there is no more intriguing subject for speculation than the scope of judicial review of decisions of the United States Tax Court as sought to be delineated in Dobson v. Commissioner three years ago. The case was a valiant attempt to limit the scope of review of appellate courts by defining the area in which the findings of the Tax Court would be conclusive. The task was an impossible one at the outset because of the lack of standard definition, except at the core, of the flexible and fluid concepts of "findings of …


Master-Servant-Subrogation-Right Of The United States To Recover For Injuries To A Soldier Caused By The Negligent Act Of Another, John R. Dykema Nov 1946

Master-Servant-Subrogation-Right Of The United States To Recover For Injuries To A Soldier Caused By The Negligent Act Of Another, John R. Dykema

Michigan Law Review

On February 7, 1944, an enlisted soldier in the Army of the United States was injured in a traffic accident in Los Angeles, California, through the negligence of an agent of appellant; he was incapacitated for duty for a period of twenty-nine days. The United States paid his hospital expenses, and also his salary during this period, amounting to a total of $192.56. In March, 1944, the soldier, in return for three hundred dollars, executed a release to appellant "from any and all claims and demands" on account of the accident. The United States sued in the Federal District Court …


Taxation-Income Tax-Deductions-Dividends Or Interest, Milton D. Solomon S.Ed. Apr 1946

Taxation-Income Tax-Deductions-Dividends Or Interest, Milton D. Solomon S.Ed.

Michigan Law Review

The difficulty of determining whether payments made by a corporation on its securities are dividends or interest has been highlighted by two recent cases, involving substantially similar facts, which came before the Supreme Court on review.


Constitutional Law-Intergovernmental Immunities-Federal Tax On State Function, Joseph N. Morency, Jr. Apr 1946

Constitutional Law-Intergovernmental Immunities-Federal Tax On State Function, Joseph N. Morency, Jr.

Michigan Law Review

In 1911 the State of New York began to acquire title to all of the lands in the Saratoga Springs area with a view to halting excessive pumping of the mineral waters for which the springs are famous. As a result of state ownership the area became a state reservation which, in 1930, was placed under control of, the Saratoga Springs Commission. A hotel-sanitarium, recreational facilities, bath houses, drink halls, a research laboratory as well as state operation of the springs were part of a state program under legislative authority. During the period from 1932 to 1934, sales of the …


Taxation-Income Tax-Depletion-Lessor's Share In Net Income As Subject To Depletion, William H. Buchanan S.Ed. Apr 1946

Taxation-Income Tax-Depletion-Lessor's Share In Net Income As Subject To Depletion, William H. Buchanan S.Ed.

Michigan Law Review

Taxpayer which owned certain lands leased the same to companies for production of oil and other minerals for a cash bonus, a royalty in the usual form, and an agreement that lessor should receive a percentage of the net money profits realized by the lessees from their operation under the lease. Lessor claimed a right to deduct depletion allowance from the receipts which were a percentage of the net income arising from operating the properties. Held, lessor had a right to depletion deduction in respect to the percentage of net income because it had an "economic interest" in the …


Taxation-Income Tax-Embezzled Funds As Income, Milton D. Solomon S.Ed. Apr 1946

Taxation-Income Tax-Embezzled Funds As Income, Milton D. Solomon S.Ed.

Michigan Law Review

In the tax year in question, the taxpayer embezzled funds that came into his hands in his capacity as a bookkeeper for a transfer and warehouse company in Reno, Nevada. He lost practically all of this money in various gambling houses. The taxpayer was convicted and sentenced for the crime of embezzlement and was paroled in 1943. The Commissioner determined that the taxpayer was required to report the amount embezzled in 1941 as income received in that year and asserted a tax deficiency. The Tax Court sustained the Commissioner and the circuit court of appeals reversed. Held, the embezzled …


Taxation-Income Tax-Deductions-Expenses Incurred In The Pursuit Of Business-Commuter Expense, Joseph R. Brookshire S.Ed. Apr 1946

Taxation-Income Tax-Deductions-Expenses Incurred In The Pursuit Of Business-Commuter Expense, Joseph R. Brookshire S.Ed.

Michigan Law Review

The taxpayer, a lawyer, had resided in Jackson, Mississippi for approximately thirty-five years, and had maintained a law office there for more than twenty years. In 1927 he accepted a position as general solicitor for a railroad whose main office was in Mobile, Alabama. Although the taxpayer's work was devoted entirely to the railroad's business, he refused to abandon his long established connections in Jackson because his position was yearly, appointive, and therefore uncertain. Arrangements were made with the railroad whereby the taxpayer allocated his time between the two cities, but also bore the traveling expenses between, and the living …


Taxation-Income Tax-Deduction For Worthless Stock-Objective V. Subjective Test, Rosemary Scott Apr 1946

Taxation-Income Tax-Deduction For Worthless Stock-Objective V. Subjective Test, Rosemary Scott

Michigan Law Review

The taxpayer held stock in a corporation - which had been in receivership for five years, and which had, during all of that time, liabilities substantially exceeding its assets. When the receivership was ended and when a derivative suit against the management was compromised, the taxpayer declared the stock to be worthless and claimed a deduction for 1937. The commissioner denied the deduction on the ground that the stock had not become worthless in 1937. The Tax Court sustained this ruling and the circuit court of appeals affirmed. Held, the value of the stock should be determined by an …


Abstracts, Mary Jane Plumer Dec 1945

Abstracts, Mary Jane Plumer

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.


Family Partnerships Under The Income Tax, Yale A. Barkan Oct 1945

Family Partnerships Under The Income Tax, Yale A. Barkan

Michigan Law Review

The usual type of family partnership has the taxpayer operating or organizing a business, and giving or selling a portion of that business to his wife or children. The aim of the taxpayer is to divide his income among members of the family group. The profits are thus taxed to two or more individuals, rather than to the taxpayer alone. Recognition of these family partnerships for federal income tax purposes is just one aspect of the family income problem.


Abstracts, Mary Jane Plumer Oct 1945

Abstracts, Mary Jane Plumer

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.