Douglas Hotel Co. v. Commissioner
United States Tax Court
1. Equity Invested Capital -- Donated Property. -- Value of real estate deeded to a corporation as a gift by a citizen of Omaha, Nebraska, as a site for a first-class hotel development in that city held includible in donee corporation's equity invested capital at fair market value thereof at the time acquired.
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1. Equity Invested Capital -- Donated Property. -- Value of real estate deeded to a corporation as a gift by a citizen of Omaha, Nebraska, as a site for a first-class hotel development in that city held includible in donee corporation's equity invested capital at fair market value thereof at the time acquired. Brown Shoe Co. v. Commissioner, 339 U.S. 583. 2. Equity Invested Capital -- Distribution of Depreciation Reserves. -- Distribution to sole stockholder of cash depreciation reserves set up in prior years against hotel properties held "not out of accumulated earnings and profits" within…
1Opinion of the Court
OPINION.
LsMiRE, Judge:
Our first question is whether the land which Bran-déis deeded to petitioner as a site for the hotel is includible in petitioner’s invested capital. This question is controlled by the recent decision of the United States Supreme Court in Brown Shoe Co. v. Commissioner, 339 U. S. 583. It was there held that property donated to a corporation by nonstockholders was includible in equity invested capital as a contribution to capital. On authority of that case we hold that the land deeded to petitioner by Brandéis for the hotel site in 1913 is includible in petitioner’s equity…
2Cases cited2 opinions
- Brown Shoe Co. v. CommissionerSupreme Court of the United States · 1950
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
3Cited by14 opinions
- Gross v. CommissionerUnited States Tax Court · 1955
- Differential Steel Car Co. v. Comm'rUnited States Tax Court · 1951
- Mariani Frozen Foods, Inc. v. CommissionerUnited States Tax Court · 1983
- Estate of Noble v. Comm'rUnited States Tax Court · 2005
- Wortmann v. Comm'rUnited States Tax Court · 2005
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