Miller Charitable Fund v. Commissioner
United States Tax Court
Held, in computing a private foundation's "undistributed income," on which the sec. 4942, I.R.C. 1954, excise tax is imposed, capital gains and losses from the sale or other disposition of property are taken into account only in an amount equal to any net short-term capital gain for the taxable year; the same rule in this respect applies to private foundations which are trusts as to private foundations which are corporations.
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Held, in computing a private foundation's "undistributed income," on which the sec. 4942, I.R.C. 1954, excise tax is imposed, capital gains and losses from the sale or other disposition of property are taken into account only in an amount equal to any net short-term capital gain for the taxable year; the same rule in this respect applies to private foundations which are trusts as to private foundations which are corporations. Held, further, sec. 4942, I.R.C. 1954, does not violate art. I, sec. 8 or sec. 9, the 5th Amendment or the 16th Amendment of the Constitution of the United States.
1Opinion of the Court
OPINION
FEATHERSTON, Judge:
Respondent determined the following deficiencies in petitioner’s excise taxes under section 4942(a): 1 ;
Period ended Sept. 30— Amount
1981.■ $40,619.44
1982 . 59,254.12
1983 . 59,254.12
1984. 59,254.12
Respondent also determined that petitioner is hable for a second-tier deficiency in excise taxes in the amount of $395,027.44 under section 4942(b); however, the parties have stipulated that, because of distributions made before the end of a statutory correction period, petitioner is not hable for this section 4942(b) amount.
The issues for decision are whether, for the…
2Cases cited15 opinions
- Flint v. Stone Tracy Co.Supreme Court of the United States · 1911
- J. W. Hampton, Jr., & Co. v. United StatesSupreme Court of the United States · 1928
- Bob Jones University v. SimonSupreme Court of the United States · 1974
- Pollock v. Farmers' Loan & Trust Co.Supreme Court of the United States · 1895
- Pollock v. Farmers' Loan & Trust Co.Supreme Court of the United States · 1895
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3Cited by1 opinion
- Miller Charitable Fund v. CommissionerUnited States Tax Court · 1987