Community Mausoleum Co. v. Commissioner
United States Board of Tax Appeals
The right acquired by a purchaser of space in a mausoleum is realty and the vendor of such space may elect to report on the installment basis where the initial payment does not exceed 40 percent of the selling price. In such sales the portion of the sales price to be collected by a trustee and held as a perpetual care fund should be excluded from both contract price and gross profit.
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The right acquired by a purchaser of space in a mausoleum is realty and the vendor of such space may elect to report on the installment basis where the initial payment does not exceed 40 percent of the selling price. In such sales the portion of the sales price to be collected by a trustee and held as a perpetual care fund should be excluded from both contract price and gross profit. On sales where the initial payment exceeds 40 percent, which are to be reported on the accrual basis, the perpetual care fund is to be excluded from gross income in the year of sale.
1Opinion of the Court
*21OPINION.
Aeundell:
Petitioner contends that, being on the accrual basis and reporting its income on the installment basis allowed by section 44 of the Revenue Act of 1928, it is entitled to have 10 percent of the total amount of cash received in the year on crypt sales, whether made in that or previous years, either deducted as an expense in the year in which the sale is made, or included as part of the cost of the crypts sold, or excluded from its gross income altogether. Petitioner contends that it derives no advantage from this 10 percent, except possibly what might result from readier sales…
2Cases cited4 opinions
- Mount Saint Mary's Cemetery Assn. v. MullinsSupreme Court of the United States · 1919
- Roanoke Cemetery Co. v. GoodwinSupreme Court of Virginia · 1903
- Hollywood Cemetery Assn. v. PowellCalifornia Supreme Court · 1930
- Mullins v. Mount St. Mary's Cemetery Ass'nSupreme Court of Missouri · 1914
3Cited by8 opinions
- Green Lawn Memorial Park, Inc. v. McDonaldDistrict Court, M.D. Pennsylvania · 1958
- Meadowlawn Memorial Gardens, Inc. v. United StatesUnited States Court of Claims · 1980
- Hawaiian Cemetery Asso. v. CommissionerUnited States Tax Court · 1960
- Cedar Park Cemetery Ass'n, Inc. v. CommissionerUnited States Tax Court · 1949
- Community Mausoleum Co. v. CommissionerUnited States Board of Tax Appeals · 1935
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