Burge v. Commissioner
United States Tax Court
Sec. 117 (m), I. R. C. 1939 -- Collapsible Corporations. -- The petitioner and others formed a corporation to construct an apartment building and obtained a loan guaranteed by the Federal Housing Administration in an amount in excess of the cost of construction.
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Sec. 117 (m), I. R. C. 1939 -- Collapsible Corporations. -- The petitioner and others formed a corporation to construct an apartment building and obtained a loan guaranteed by the Federal Housing Administration in an amount in excess of the cost of construction. When the building was completed, and prior to the realization by the corporation of a substantial amount of the net income to be derived from the property, the corporation redeemed and canceled its outstanding class B stock, distributing in exchange therefor a part of the excess of the loan over the construction cost. The petitioner…
1Opinion of the Court
Atkins, Judge:
The respondent determined deficiencies in income taxes for the calendar years 1950 and 1951 in the respective amounts of $12,591.24 and $10,525.80.
The item in issue for 1950 represents gain realized on the redemption of stock in a housing corporation and reported as long-term capital gain which the respondent determined to be ordinary income, either as compensation under section 22 (a) or income from the sale or exchange of stock in a collapsible corporation under section 117 (m) of the Internal Revenue Code of 1939. The item in issue for-1951 represents gain from the sale of…
2Cases cited3 opinions
- Barr v. United StatesSupreme Court of the United States · 1945
- Gross v. CommissionerUnited States Tax Court · 1955
- Commissioner of Internal Revenue v. George M. Gross and Anna Gross, (And Ten Other Consolidated Petitions for Review)Court of Appeals for the Second Circuit · 1956
3Cited by58 opinions
- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Arthur Glickman Herman Glickman and Ruth Glickman and Aaron Glickmand and Freda Glickman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1958
- Abbott v. CommissionerUnited States Tax Court · 1957
- Rolland L. King and Arlene P. King v. United StatesCourt of Appeals for the Fifth Circuit · 1981
- Bryan v. CommissionerUnited States Tax Court · 1959
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