Ohio Furnace Co. v. Commissioner
United States Tax Court
Petitioner Foundation purchased the stock of petitioner Furnace Company, for which it gave the sellers a series of notes. The entire net earnings of the Furnace Company were, under its charter, to inure to the Foundation, and during the years in question constituted its only income. The Foundation was required by the purchase agreement with the sellers to use substantially all of its earnings to pay off the notes.
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Petitioner Foundation purchased the stock of petitioner Furnace Company, for which it gave the sellers a series of notes. The entire net earnings of the Furnace Company were, under its charter, to inure to the Foundation, and during the years in question constituted its only income. The Foundation was required by the purchase agreement with the sellers to use substantially all of its earnings to pay off the notes. The only purpose for which the Foundation was established was to give financial assistance to the Shattuck School or other similar Minnesota nonprofit organizations, organized and…
1Opinion of the Court
OPINION.
Turner, Judge:
Petitioner Shattuck-Ohio Foundation contends that it is entitled to exemption under both section 101 (6) and 101 (14) of the Internal Revenue Code of 1939,1 and, alternatively, that if it is not exempt under these sections of the Code, it is then exempt under the provisions of section 302 (d) of the Revenue Act of 1950.2
To qualify for exemption under section 101 (6), the Foundation must satisfy three conditions. First, it must have been organized and, during the years herein, must have been operated exclusively for educational purposes. Second, no part of its earnings…
2Cases cited10 opinions
- C. F. Mueller Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
- Roche's Beach, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1938
- United States v. Community Services, Inc.Court of Appeals for the Fourth Circuit · 1951
- C. F. Mueller Co. v. CommissionerUnited States Tax Court · 1950
- Willingham, Collector of Internal Revenue v. Home Oil MillCourt of Appeals for the Fifth Circuit · 1950
5 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Commissioner v. BrownSupreme Court of the United States · 1965
- Hancock Academy of Savannah, Inc. v. CommissionerUnited States Tax Court · 1977
- Stevens Bros. Foundation, Inc. v. CommissionerUnited States Tax Court · 1962
- West Los Angeles Institute for Cancer Research v. Ward MayerCourt of Appeals for the Ninth Circuit · 1966
- Draper v. CommissionerUnited States Tax Court · 1959
26 more not listed; retrieve them via the Exa API.