Industrial Addition Asso. v. Commissioner
United States Tax Court
1. Petitioner, a corporation which in its inception was not organized for profit, constructed approximately 100 houses and leased them to a milling company at a rental sufficient to amortize petitioner's indebtedness and to pay 6 percent per annum on its outstanding certificates of beneficial ownership.
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1. Petitioner, a corporation which in its inception was not organized for profit, constructed approximately 100 houses and leased them to a milling company at a rental sufficient to amortize petitioner's indebtedness and to pay 6 percent per annum on its outstanding certificates of beneficial ownership. Held, petitioner is not exempt from tax under section 101 (7) or (8) of the 1936 Act and corresponding sections of the 1934 and 1932 Acts; held, further, petitioner was not engaged in carrying on or doing business during the years 1933 to 1936, inclusive. 2. Payments to certificate holders…
1Opinion of the Court
OPINION.
ARTTNdell, Judge:
Petitioner claims to be exempt from tax under subsection (7) or (8) of section 101 of the Revenue Act of 1936 and corresponding provisions of the 1932 and 1934 Acts. The two subsections, which were reenacted without change in each of the three acts, are set forth below.1 Petitioner asserts that its position is generally supported by either or both of these subsections, though it does not state with clarity which provision governs the particular facts presented here.
Two factors must appear as a prerequisite to exemption under either paragraph. One of these is common to…
2Cases cited3 opinions
- United States v. Emery, Bird, Thayer Realty Co.Supreme Court of the United States · 1915
- McCoach v. Minehill & Schuylkill Haven RailroadSupreme Court of the United States · 1913
- Zonne v. Minneapolis SyndicateSupreme Court of the United States · 1911
3Cited by13 opinions
- Commissioner of Internal Revenue v. Lake Forest, Inc.Court of Appeals for the Fourth Circuit · 1962
- Lake Forest, Inc. v. CommissionerUnited States Tax Court · 1961
- Kentucky Municipal League v. CommissionerUnited States Tax Court · 1983
- National Auto. Dealers Assn. v. CommissionerUnited States Tax Court · 1943
- Consumer-Farmer Milk Co-op., Inc. v. CommissionerUnited States Tax Court · 1949
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