Legal Opinion

Broadway-Brompton Bldgs. Liquidation Trust v. Commissioner

United States Board of Tax Appeals

Decided October 13, 1936No. Docket No. 82818PublishedCited by 8 opinions

The petitioner was created under an agreement by the bondholders under two defaulted mortgages for the purpose of acquiring and selling the assets covered by the mortgages, distributing the proceeds to the bondholders and liquidating the trust as soon as practicable. Such assets consisted of two apartment houses, store rooms and a public garage which are being operated by the trust pending the sale of the property.

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The petitioner was created under an agreement by the bondholders under two defaulted mortgages for the purpose of acquiring and selling the assets covered by the mortgages, distributing the proceeds to the bondholders and liquidating the trust as soon as practicable. Such assets consisted of two apartment houses, store rooms and a public garage which are being operated by the trust pending the sale of the property. Held, that the petitioner was a liquidating trust and not an association taxable as a corporation.

1Opinion of the Court

OPINION.

Van Fossan :

This proceeding was brought to redetermine a deficiency in the income tax of the petitioner for the fiscal year ending August 31, 1933, in the sum of $2,305.34, together with an excess profits tax deficiency of $838.31 for the same year.

The only question at issue is whether the petitioner is taxable as an association or as a trust. Several other assignments of error were made but were withdrawn or settled by stipulation. It was further stipulated that no excess profits tax is due and that if the petitioner is taxable as a trust the correct amount of its income tax is…

2Cited by8 opinions

  1. Cebrian v. United StatesUnited States Court of Claims · 1960
  2. Walker v. United StatesDistrict Court, D. Massachusetts · 1961
  3. Broadway-Brompton Bldgs. Liquidation Trust v. CommissionerUnited States Board of Tax Appeals · 1936
  4. Cole & Crane Real Estate Trust v. CommissionerUnited States Tax Court · 1944
  5. Marlborough House, Inc. v. CommissionerUnited States Board of Tax Appeals · 1939

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