Riverfront Groves, Inc. v. Commissioner
United States Tax Court
Petitioner is a corporation which assists citrus grove owners in marketing their fruit. Petitioner became a member-patron of the Plymouth Citrus Products Cooperative to provide a means of marketing the grove owners' fruit which was unsuitable for packing. As a member-patron of Plymouth petitioner consented to include in income noncash per-unit retain certificates distributed to petitioner by Plymouth. These certificates represented petitioner's equity interest in Plymouth.
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Petitioner is a corporation which assists citrus grove owners in marketing their fruit. Petitioner became a member-patron of the Plymouth Citrus Products Cooperative to provide a means of marketing the grove owners' fruit which was unsuitable for packing. As a member-patron of Plymouth petitioner consented to include in income noncash per-unit retain certificates distributed to petitioner by Plymouth. These certificates represented petitioner's equity interest in Plymouth. Held, the inclusion in petitioner's income of the face amounts of the per-unit retain certificates does not violate…
1Opinion of the Court
Fat, Judge:
Respondent determined deficiencies in the Federal income tax of petitioner as follows:
TYE July St— Deficiency
1968 -$10,335.62
1969 - 10,529.37
1970 - 14,795.90
The issue for consideration is whether petitioner should take the face amount of qualified per-unit retain certificates into income as it has consented to do pursuant to the provisions of section 1388 (h) ,1
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference.
The petitioner, Riverfront Groves, Inc. (Riverfront) 5 is a…
2Cases cited41 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Steward MacHine Co. v. DavisSupreme Court of the United States · 1937
- Gould v. GouldSupreme Court of the United States · 1917
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3Cited by15 opinions
- Sakol v. CommissionerUnited States Tax Court · 1977
- Estate of Gillespie v. CommissionerUnited States Tax Court · 1980
- Stevenson Co-Ply, Inc. v. CommissionerUnited States Tax Court · 1981
- Kingfisher Cooperative Elevator Asso. v. CommissionerUnited States Tax Court · 1985
- Blanchard v. CommissionerUnited States Tax Court · 1977
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