Braunstein v. Commissioner
United States Tax Court
The petitioners formed two corporations for the purpose of constructing apartment houses which were to be financed under section 608 of the National Housing Act, and in each instance there was an excess of mortgage loan funds remaining after the cost of construction had been paid.
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The petitioners formed two corporations for the purpose of constructing apartment houses which were to be financed under section 608 of the National Housing Act, and in each instance there was an excess of mortgage loan funds remaining after the cost of construction had been paid. In the year following completion of construction petitioners, as stockholders, received distribution from corporations in amounts which included the mortgage funds remaining after construction, and thereafter, in the same year, sold their stock in the two corporations. Held, that the corporations were collapsible…
1Opinion of the Court
OPINION.
Turnee, Judge:
It is the position of the petitioners that the applicability of section 117 (m) of the Internal Revenue Code of 1939 was new matter pleaded by the respondent in his amended answers, and under Rule 32 of the Court’s Rules of Practice, he has the burden of proof with respect thereto. It is our opinion that this position is not well taken. The facts of record definitely show that the applicability of section 117 (m) was at all times recognized and understood by the parties on both sides of these cases to be a basis of the differences between them. That such was the case…
2Cases cited12 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
- Burge v. CommissionerUnited States Tax Court · 1957
- C. D. Spangler and Veva C. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Sidney v. CommissionerUnited States Tax Court · 1958
7 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Braunstein v. CommissionerSupreme Court of the United States · 1963
- Braunstein v. CommissionerUnited States Tax Court · 1961