University Country Club, Inc. v. Commissioner
United States Tax Court
Held: 1. Entries on petitioner's income tax return for TYE 1966 were adequate to constitute a "clue" so that sec. 6501(e)(1)(A)(ii) applies. The 6-year period of limitations does not apply and assessment of additional tax for that year is barred by the running of the 3-year period of limitations. 2. Petitioner's class B stock is, in substance, not a proprietary interest, but instead, represents a privilege for using petitioner's country club facilities.
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Held: 1. Entries on petitioner's income tax return for TYE 1966 were adequate to constitute a "clue" so that sec. 6501(e)(1)(A)(ii) applies. The 6-year period of limitations does not apply and assessment of additional tax for that year is barred by the running of the 3-year period of limitations. 2. Petitioner's class B stock is, in substance, not a proprietary interest, but instead, represents a privilege for using petitioner's country club facilities. Receipts from the sale of such stock constitute ordinary income to petitioner. 3. Petitioner failed to prove the useful lives of its golf…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined deficiencies in petitioner’s corporate Federal income tax for the taxable years as follows:
Year Amount
1966_ $52,793.48
1968_ 2,307.33
1970_ 1,913.48
The issues presented for decision are: (1) Whether payments to petitioner from a separate class of shareholders, who were also members of its club, should be characterized as income or contributions to capital; (2) whether initiation fees paid by non-shareholder members were income or contributions to capital; (3) if the above payments are income, whether petitioner has, as a consequence, omitted more than 25…
2Cases cited11 opinions
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