Bramlette Bldg. Corp. v. Commissioner
United States Tax Court
Petitioner owned and operated an office building. It rented space to tenants and provided the usual and customary services in connection therewith. In addition, it leased space to operators of a barbershop, a drugstore, and a lunch counter, and it provided incidental services for the repair of machines and furniture.
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Petitioner owned and operated an office building. It rented space to tenants and provided the usual and customary services in connection therewith. In addition, it leased space to operators of a barbershop, a drugstore, and a lunch counter, and it provided incidental services for the repair of machines and furniture. Held, that its gross receipts constituted "rents" under sec. 1372(e)(5), I.R.C. 1954, and sec. 1.1372-4(b)(5)(iv), Income Tax Regs., thus causing a termination of petitioner's election to be taxed as a small business corporation under sec. 1372(a), I.R.C. 1954. Held, further,…
1Opinion of the Court
OPINION
Í. Termination of Section 1372 Election. — The first issue is whether respondent correctly terminated petitioner’s subchapter S election. See Max Feingold,49 T.C. 461 (1968).
Section 1372(e)(5), as applicable to the years in controversy, provided:
SEC. 1S72. ELECTION BY SMALL BUSINESS CORPORATION.(e) Termination.—
*******(5) Personal holding company income. — An election under subsection (a) made by a small business corporation shall terminate if, for any taxable year of tbe corporation for wbicb tbe election is in effect, sueb corporation bas gross receipts more than 20 percent of which…
2Cases cited4 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Healy v. CommissionerSupreme Court of the United States · 1953
- Feingold v. CommissionerUnited States Tax Court · 1968
- Roob v. CommissionerUnited States Tax Court · 1968
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- Lansing Broadcasting Co. v. CommissionerUnited States Tax Court · 1969
- Thompson v. CommissionerUnited States Tax Court · 1980
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