Zenith Sportswear Co. v. Commissioner
United States Tax Court
1. At the beginning of the first taxable year in question, petitioner took over the business of a partnership then being conducted by two individuals on leased premises. The partners became equal stockholders in petitioner which continued to conduct the business on the same premises. Petitioner did not take over the lease but it did pay the annual rental of $ 6,500 provided for in the lease.
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1. At the beginning of the first taxable year in question, petitioner took over the business of a partnership then being conducted by two individuals on leased premises. The partners became equal stockholders in petitioner which continued to conduct the business on the same premises. Petitioner did not take over the lease but it did pay the annual rental of $ 6,500 provided for in the lease. During the first taxable year a disagreement arose between the two stockholders, as a result of which one stockholder sold to petitioner all of his stock interest in petitioner, together with his one-half…
1Opinion of the Court
Zenith Sportswear Co. Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Zenith Sportswear Co. v. Commissioner
Docket No. 56288
United States Tax Court
28 T.C. 455; 1957 U.S. Tax Ct. LEXIS 178;
May 27, 1957, Filed
Decision will be entered under Rule 50.
1. At the beginning of the first taxable year in question, petitioner took over the business of a partnership then being conducted by two individuals on leased premises. The partners became equal stockholders in petitioner which continued to conduct the business on the same premises. Petitioner did not take over the lease but it did…
2Cases cited4 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Gunn v. CommissionerUnited States Tax Court · 1955
- Perrault v. CommissionerCourt of Appeals for the Tenth Circuit · 1957
- Zenith Sportswear Co. v. CommissionerUnited States Tax Court · 1957