Rudolph A. Hardman, Frances N. Hardman and Hardman, Inc. v. United States

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• setting forth the 11 factors that the U.S. Court of Appeals for the Ninth Circuit applies to characterize a taxpayer’s interest in a corporation
• “The absence of a fixed maturity date indicates that repayment is tied to the fortunes of the business.”
• “The company was obligated to pay regardless of whether it had accumulated earnings and profits.”
• “Courts closely scrutinize the economic reality of such transactions to determine whether the taxpayer’s characterization is genuine or whether the transaction was, as the IRS contends here, a sale in name only.”
• “If a stockholder’s percentage interest in the corporation or voting rights increase as a result of the transfer, it will contribute to a finding that the transfer was a contribution to capital rather than a sale.”
• “The issuance of a . . . note indicates a bona fide indebtedness.”

Source: CourtListener parenthetical corpus (CC0).