Garrett Holding Corp. v. Commissioner
United States Tax Court
1. Petitioner owned securities and real estate and engaged in farming for profit during 1942. Its dividend income was more than 80 per cent of the difference between its total gross receipts and the cost of its farm production. More than 50 per cent of its stock was owned by or for not more than five individuals. Held, petitioner is a personal holding company as defined in section 501 (a). Woodside Acres, Inc., 46 B. T. A. 1124; affd., 134 Fed.
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1. Petitioner owned securities and real estate and engaged in farming for profit during 1942. Its dividend income was more than 80 per cent of the difference between its total gross receipts and the cost of its farm production. More than 50 per cent of its stock was owned by or for not more than five individuals. Held, petitioner is a personal holding company as defined in section 501 (a). Woodside Acres, Inc., 46 B. T. A. 1124; affd., 134 Fed. (2d) 793, followed. 2. Petitioner used part of its 1942 income to pay indebtedness incurred after January 1934. Held, the personal holding company…
1Opinion of the Court
OPINION.
LeMire, Judge:
The first question for decision is whether the petitioner was a personal holding company as defined in section 501 (a). The statute fixes certain requirements of (1) gross income and (2) stock ownership. It has been stipulated that the petitioner meets the stock ownership requirement. It is for us to determine whether at least 80 per cent of the petitioner’s gross income during 1942 was personal holding company income.
The petitioner received personal holding company income from dividends in the amount of $74,985. The balance of the petitioner’s income was derived from…
2Cases cited2 opinions
- Tarbox Corp. v. CommissionerUnited States Tax Court · 1946
- Agricultural Sec. Corp. v. CommissionerUnited States Board of Tax Appeals · 1939
3Cited by19 opinions
- Sicanoff Vegetable Oil Corporation v. Commissioner of Internal Revenue, Sicanoff Tallow Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1958
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
- Webber v. CommissionerUnited States Tax Court · 1954
- Guy F. Atkinson Co. v. CommissionerUnited States Tax Court · 1984
- Amo Realty Co. v. CommissionerUnited States Tax Court · 1955
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