James Hotel Co. v. Commissioner
United States Tax Court
The Tower Club required each new member to pay an "initiation fee" part of which represented payment for 1 share of stock in the corporation. Petitioners contend that the amount in excess of the par value of the stock was a contribution to capital in the form of paid-in surplus. Held, that the amounts over and above the par value of the stock were in return for services and taxable as ordinary income.
1Opinion of the Court
Dawson, Judge:
Respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows:
Fiscal year ending Aug. SI— Deficiency
1955 _$48,250. 90
1956 _ 13,060. 98
1957 _ 7,561.62
The only issue involved is whether amounts paid to Tower Club, Inc., in excess of the par value of stock certificates, by persons seeking membership, constitute taxable income to Tower Club, Inc., or contributions to capital. :
FINDINGS OF FACT.
All of the facts are stipulated and are so found.
The James Hotel Company is a corporation organized and existing under the Oklahoma Business…
2Cases cited7 opinions
- Commissioner v. HansenSupreme Court of the United States · 1959
- Teleservice Company of Wyoming Valley v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Teleservice Co. of Wyoming Valley v. CommissionerUnited States Tax Court · 1957
- United Grocers, Ltd. v. United StatesDistrict Court, N.D. California · 1960
- Cambridge Apartment Bldg. Corp. v. CommissionerUnited States Board of Tax Appeals · 1941
2 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- University Country Club, Inc. v. CommissionerUnited States Tax Court · 1975
- Eckstein v. United StatesUnited States Court of Claims · 1971
- Oakland Hills Country Club v. CommissionerUnited States Tax Court · 1980
- Concord Village, Inc. v. CommissionerUnited States Tax Court · 1975
- Board of Trade v. CommissionerUnited States Tax Court · 1996
9 more not listed; retrieve them via the Exa API.