Resthaven Memorial Cemetery v. Commissioner
United States Board of Tax Appeals
Petitioner made absolute sales of units of cemetery property, and delivered deeds to the purchasers. The purchasers executed agreements giving petitioner the option to repurchase the lots at any time within eight years, for which option petitioner agreed to pay $12 annually per unit. Petitioner agreed to repurchase the units at the end of eight years, but the obligation ceased in the event of certain contingencies subsequent.
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Petitioner made absolute sales of units of cemetery property, and delivered deeds to the purchasers. The purchasers executed agreements giving petitioner the option to repurchase the lots at any time within eight years, for which option petitioner agreed to pay $12 annually per unit. Petitioner agreed to repurchase the units at the end of eight years, but the obligation ceased in the event of certain contingencies subsequent. Held, the transactions were sales; payments received from purchasers were income from sales rather than loans; and annual payments by petitioner were for retaining the…
1Opinion of the Court
*685OPINION.
HakRon :
The basic question is whether the transactions involving the execution and delivery of deeds to cemetery lots and the issuance of repurchase certificates constituted sales of such lots or loans secured by mortgages on such lots.
*686On its corporation income and excess profits tax returns for its fiscal years ended November 30,1935 and 1936, petitioner included in income $12,240 and $25,380, respectively, the gross amounts received in connection with, the transactions in question. In a protest filed with respondent, petitioner contended that the amounts of $12,240 and $25,380…
2Cases cited4 opinions
- McGarrahan v. Mining Co.Supreme Court of the United States · 1878
- Hanford v. BlessingIllinois Supreme Court · 1875
- Tucker v. WitherbeeCourt of Appeals of Kentucky · 1908
- Vaughn v. SmithCourt of Appeals of Kentucky · 1912
3Cited by8 opinions
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- Thompson v. CommissionerUnited States Tax Court · 1976
- Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- Desert Lawn Memorial Park, Inc. v. CommissionerUnited States Tax Court · 1960
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