Marprowear Profit-Sharing Trust v. Commissioner
United States Tax Court
Petitioner is a profit-sharing trust qualified under sec. 401, I.R.C. 1954. It purchased a shopping center with a purchase-money mortgage obtained from a third party plus certain sums transferred to it from the corporation founding the trust.
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Petitioner is a profit-sharing trust qualified under sec. 401, I.R.C. 1954. It purchased a shopping center with a purchase-money mortgage obtained from a third party plus certain sums transferred to it from the corporation founding the trust. Held, the transfers from the corporation to the trust to purchase the shopping center are "acquisition indebtedness" within the meaning of sec. 514. Held, further, the trust's unrelated business taxable income is taxable at trust and not corporate rates. Held, further, sec. 6651(a) addition to tax not applicable.
1Opinion of the Court
Sterrett, Judge:
By letter dated November 10, 1977, respondent determined deficiencies in income taxes and additions to tax for petitioner’s following taxable years and in the following amounts:
Addition to tax TYE Dec. 31— Deficiency under sec. 6651(a)
1973.$24,293 $6,073
1974.84,546 21,137
The issues presented are: (1) Whether an amount transferred by Marprowear Corp. to petitioner represented additional acquisition indebtedness upon the purchase of a shopping center by petitioner, within the meaning of section 514(c), I.R.C. 1954, or was merely an advance contribution; (2) whether the section…
2Cases cited6 opinions
- Logan Lumber Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Paula Constr. Co. v. CommissionerUnited States Tax Court · 1972
- Ferrando v. United StatesCourt of Appeals for the Ninth Circuit · 1957
- Latham Park Manor, Inc. v. CommissionerUnited States Tax Court · 1977
- West Coast Ice Co. v. CommissionerUnited States Tax Court · 1968
1 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Zabolotny v. CommissionerUnited States Tax Court · 1991
- Currie v. CommissionerUnited States Tax Court · 1989
- Marprowear Profit-Sharing Trust v. CommissionerUnited States Tax Court · 1980
- Zabolotny v. CommissionerUnited States Tax Court · 1991