874 Park Ave. Corp. v. Commissioner
United States Board of Tax Appeals
Under the terms of 99 proprietary leases, assessments were levied by petitioner, a cooperative apartment house corporation, on its stockholder-tenants for the purpose of amortizing mortgages on its property, and were so used by petitioner and credited on its books to its capital stock account. Held, that such assessments were contributions to the capital of the corporation and not taxable income.
1Opinion of the Court
*405OPINION.
Matthews :
The only issue is whether the assessments paid to the petitioner by stockholder-tenants pursuant to the terms of their leases to be used by the petitioner for the amortization of the mortgages on the apartment house and so used constitute paid-in surplus capital to the petitioner or income in the nature of rent. We are of the opinion that the assessments so made and employed were contributions of capital to the petitioner and as such nontaxable.
*406In relation to a state of facts in all essential respects identical with .those here presented, the Commissioner of Internal Revenue…
2Cited by4 opinions
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