Country Club Estates, Inc. v. Commissioner
United States Tax Court
Petitioner was incorporated to develop, as a residential subdivision, a tract of land situated on the outskirts of Tucson, Arizona. One hundred persons contributed $ 5,000 each to form the petitioner and received therefor three $ 1,000 debenture bonds of petitioner and 20 shares of its common stock of a par value of $ 100 each.
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Petitioner was incorporated to develop, as a residential subdivision, a tract of land situated on the outskirts of Tucson, Arizona. One hundred persons contributed $ 5,000 each to form the petitioner and received therefor three $ 1,000 debenture bonds of petitioner and 20 shares of its common stock of a par value of $ 100 each. As a part of the plan for development, petitioner donated one-half of the tract to a nonprofit country club and loaned it $ 250,000 to build a golf course thereon. Petitioner sold certain lots in the subdivision and in part payment therefor accepted some of the bonds…
1Opinion of the Court
OPINION.
Withey, Judge:
The petitioner contends that the exchange of subdivision lots for its stock and bonds was an exchange of capital stock, which had no established market value, for subdivision lots,- which likewise had no established market value, and that, therefore, no recognizable taxable gain has been realized. Further, petitioner contends that, assuming a taxable gain was realized, then the exchanges were in the nature of a partial liquidation, the bonds actually being stock. Lastly, petitioner contends that if we should find that a sale occurred, then the basis for each subdivision…
2Cases cited6 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Baltimore Transfer Co. v. CommissionerUnited States Tax Court · 1947
- Commissioner of Internal Rev. v. Laguna Land & W. Co.Court of Appeals for the Ninth Circuit · 1941
- Dorsey Co. v. CommissionerCourt of Appeals for the Fifth Circuit · 1935
- Northern Refrigerator Line, Inc. v. CommissionerUnited States Tax Court · 1943
1 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Norwest Corp. v. Comm'rUnited States Tax Court · 1998
- Commissioner of Internal Revenue v. George W. Offutt, Iii, and Jane P. Offutt, and Pimmit Development CorporationCourt of Appeals for the Fourth Circuit · 1964
- Willow Terrace Development Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- Larchfield Corp. v. United StatesDistrict Court, D. Connecticut · 1965
- Sevier Terrace Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1964
6 more not listed; retrieve them via the Exa API.